Please refer to IH&SMEFD Circular No. 08 dated May 07, 2013 on the above subject.
2. Keeping in view the difficulties being faced by rice sector, following relaxation under Regulation SE R-9 and Regulation ME R-5 of Prudential Regulations for SME Financing has been allowed for banks’/DFIs’ exposure against the rice stock:
Regulation SE R-9: Restructuring/Rescheduling of Loans (Sub Para i of Para 1):
For immediate declassification, the requirement of cash repayment has been relaxed from 50% to 10% of the restructured/ rescheduled loan amount.
Regulation ME R-5: Classification and Provisioning for Assets (Para 2):
For immediate declassification, the requirement of cash repayment has been relaxed from 50% to 10% of the restructured/ rescheduled loan amount.
3. The above relaxation shall remain applicable upto October 31, 2016. Other instructions on the subject shall remain unchanged.