| Date: |
10-02-2003
|
| Notification No: |
RBI Notification No 69/2003
|
| Issuing Authority: |
RBI
|
| Type: |
Notification
|
| File No: |
|
| Subject: |
Up-gradation of Loan Accounts Classified as Non Performing Assets (NPAs)
|
|
Up-gradation of Loan Accounts Classified as Non Performing Assets (NPAs)
DBOD.
No. BP. BC. 69 - 21.04.048 dated 10th February 2003
As
banks are aware, if arrears of interest and principal are paid by the borrower
in the case of loan accounts classified as NPAs, the account should no longer be
treated as non performing and classified as �standard' account.
2.
However, it has been brought to our notice that some banks do not comply
with this requirement and consider reclassification only after one year of
satisfactory performance of the account.
3.
It is reiterated that, banks should strictly adhere to our instructions
on asset classification to avoid inconvenience to borrowers. However, our extant
instructions in respect of re-classification of loan accounts subjected to
restructuring would remain unchanged.
4.
Please acknowledge receipt.
|
|
|