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.
Please
acknowledge receipt.
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