Please refer to BSD Circular No. 12 dated 25th August, 2004 on the captioned subject.

2. It has been decided that the general provision against consumer finance held under Regulation R-4 of Prudential Regulations for Consumer Financing, be eligible for inclusion in overall General Provisions or General Reserves for loan losses under Tier 2 (Supplementary) Capital. The maximum limit of overall General Provisions or General Reserves for loan losses, as defined in the above referred Circular, would remain unchanged i.e. 1.25% of total Risk Weighted Assets.

3. Other instructions on the subject would remain same.

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