Please refer to BPRD Circular Letter No.27
dated June 22, 1999 and subsequent modification issued vide
BPRD Circular Letter No.2 dated January 29, 2000 on the captioned
subject. The State Bank has been receiving
queries regarding Interpretation of the instructions contained
in the above-mentioned Circular Letters. In this connection
following clarifications are hereby issued:-
i. Banks/NBFIs will continue to provide for
the rescheduled/restructured loans/advances for a period of
one year (excluding grace period). However, while reporting
to the CIB, such loans/advances may be shown as "rescheduled/restructured"
instead of "defaults".
ii. All classified loans which have been rescheduled/restructured
and the mandatory period of one year has not been elapsed
since the date of their rescheduling/restructuring, will be
covered under the aforesaid circular.
iii. For the purpose of fresh credit/advance
allowed by a bank in the rescheduled/restructured accounts,
whether disbursed in the same loan account as enhancement
or a separate loan account, the whole amount of rescheduled/restructured
accounts should be classified by banks as stipulated in the
BPRD circular letter No.27 dated June 22, 1999.
Other instruction on the subject shall, however,
remain unchanged.
Please acknowledge receipt.
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