In terms of BPRD Circular Letter No.27 dated
22nd June, 1999 banks/NBFIs were advised that rescheduling/restructuring
of non-performing loans shall not change the status of classification
of a loan/ advance unless the terms & conditions of rescheduling/restructuring
are fully met for a period of atleast two years (excluding
grace period, if any) from the date of such rescheduling/restructuring.
The said period of two years was subsequently reduced to one
year vide BPRD Circular Letter No.2 dated 29th January, 2000.
2. In this connection, it is clarified that the above modified
instructions are effective prospectively from the date of
issuance of the above referred Circular Letter No.27 i.e.
22nd June, 1999 and not retrospectively. In other words, the
instructions shall apply to all such cases of rescheduling/
restructuring done after the date of issuance of the said
Other instructions on the subject shall, however, remain unchanged.