Please refer to the Prudential Regulation-VIII/ NBFIs Rule-14 circulated vide BPRD Circular No.9 dated April 27, 2000 on the captioned subject.

It has been decided with immediate effect to substitute the words ‘Federal Government’ appearing in the Note of aforesaid Regulation/ Rule with the word ‘Government’.  Accordingly the Note may be read as under:

“Note:

a)        Liquid assets mean realizable amount of bank deposits, certificates of deposit, government securities, shares of listed companies, NIT units, certificates of mutual funds, gold ornaments and inventories pledged to banks/ NBFIs with possession with ‘perfected lien’ duly supported with flawless documentation.

b)        Classified loans/advances that have been guaranteed by the Government would not require provisioning, however, markup/ interest on such accounts shall be taken to suspense account instead of income account.”

Other instructions on the subject shall, however, remain unchanged.

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