Please refer to BPRD  Circular No. 10 of 2016, whereby, revised Prudential Regulations for Consumer  Financing were issued. 
                                    2. It has been decided to make  following revisions in the Regulation R-4 of Prudential Regulations for  Consumer Financing as under:-
                                    REGULATION  R-4 
                                      GENERAL PROVISION AGAINST  CONSUMER FINANCE
                                    
                                      -  The term “general reserve” used in the Regulation R-4 of  Prudential Regulations for Consumer Financing shall henceforth be read as “general  provision”. 
 
 
- The Banks/DFI, subject to conditions prescribed below, can release  and use the general provision maintained, in terms of Regulation R-4 of  Prudential Regulations for Consumer Financing, against the secured and unsecured  consumer finance portfolio:
 
 
                                        -  The general  provision will only be available for use to make good the specific provision  requirement of the consumer financing portfolio; and,
 
 
- The aforesaid  treatment will expire on December 31, 2021. Thereafter, the general provision against  the consumer financing portfolio will be maintained as per the method  prescribed in the Regulation R-4 of Prudential Regulations for Consumer Financing  prevailing on July 09, 2020.
 
 
-  The Banks/DFIs may, as per their own discretion and in terms of relevant  internal policies, maintain the general provision against consumer financing.
                                                
3. All other instructions on the subject  shall, however, remain unchanged. The Banks/DFIs are advised to follow the  regulations in letter and spirit. Any deviation or non-compliance of the same  shall attract punitive action under the relevant provisions of the Banking  Companies Ordinance, 1962.
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