In
order to provide relief to the borrowers of flood affected
areas identified by the National Disaster Management
Authority (NDMA), banks/DFIs are encouraged to reschedule/restructure
Agriculture and SME loans/ advances to such borrowers,
as per existing Prudential Regulations (PRs) of Agriculture
and SME Financing, where the possibility of recovery
exists.
2) For all such rescheduled/restructured loans and advances,
Banks/DFIs may defer loan provisioning up to 31st December
2011. However, classification of such loans shall be
done as per criteria laid down in the relevant PRs.
This relaxation is available for loans and advances
which have become non-performing since July 1, 2010
in the affected areas identified by NDMA. Loans/advances
classified before this date shall not qualify for this
relaxation.
3)
Any misuse of above relaxations would attract penal
actions under the provisions of BCO, 1962.
Please
acknowledge receipt.