Circulars/Notifications - Banking Supervision Department  
 BSD Circular No. 15
March 26, 2001 

The Chief Executives,

All Banks.

Dear Sirs / Madam,

PRUDENTIAL REGULATION-VIII
CLASSIFICATION AND PROVISIONING

 

Please refer to BPRD Circular No.9 dated April 27, 2000 on the captioned subject.

It has been decided with immediate effect to incorporate a new sub-para (III) in para 1 of the above regulation as under:

(III)  CREDIT CARD ADVANCES:

CLASSIFICATION

DETERMINANT

TREATMENT OF INCOME

PROVISIONS TO
 BE MADE

(1)

(2)

(3)

(4)

1.      Doubtful.

Where mark-up/ interest or principal is overdue (past due) by 90 days from the due date.

 

Unrealized mark-up/ interest to be put in Suspense Account and not to be credited to Income Account except when realized in cash.

 

Provision of 50% of the difference resulting from the outstanding balance of principal less the amount of liquid assets realizable without recourse to a Court of Law.

 

2.      Loss.

Where mark-up/ interest or principal is overdue by 180 days or more from the due date.

 

As above.

Provision of 100% of the difference resulting from the outstanding balance of principal less the amount of liquid assets realizable without recourse to a Court of Law.

All other instructions shall, however, remain unchanged.

Please acknowledge receipt.



Yours faithfully,
(KAZI ABDUL MUKTADIR
)
Director
       
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