| Date: |
14-09-2002
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| Notification No: |
RBI Notification No 8/2002
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| Issuing Authority: |
RBI
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| Type: |
Notification
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| File No: |
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| Subject: |
Asset Classification of the Projects Under Implementation - Time Overrun - Reversal of Provisions
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Asset Classification of the Projects Under Implementation - Time Overrun
- Reversal of Provisions
DBS.
FID No. C-8 - 01.02.00 dated 14th September 2002
Please
refer to para 3.1 of our Circular DBS. FID. No. C-11/ 201.02.00/ 2001-02 dated
February 1, 2002 on the captioned subject in term of which the asset
classification of the projects falling under Category II, as specified therein,
is required to be decided with reference to the 'deemed date of completion' of
such projects as determined by the Independent Group. These norms have become
effective from the year ended 31 March 2002. The report of the Independent Group
was also forwarded to the FIs separately.
2.
In this context we advise that, as a prudential measure, the provisions
held by the FIs in respect of such accounts should not be reversed even in cases
where, as per the deemed date of completion of the Category II projects, certain
accounts might become eligible for up gradation to the 'standard' category.
3.
Please acknowledge receipt.
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