Income recognition, asset classification, provisioning and other related matters
RBI/2008-09/498
RPCD.CO.RF.BC.No.113/07.37.02/2008-09
All State Co-operative Banks (StCBs) and
Central Co-operative Banks (CCBs)
Dear Sir,
Income recognition, asset classification, provisioning and other related matters
Short-term agricultural advances as well as advances for other purposes are granted by State Co-operative Banks/Central Co-operative Banks to Central Co-operative Banks/Primary Agricultural Credit Societies respectively for the purpose of on-lending. As per extant instructions contained in paragraph 2 of the Annexure to our circular RPCD.No.BC.155/ 07.37.02/95-96 dated
2. On a review, it has been decided to extend the above concession to all other credit societies under on-lending system, in addition to Primary Agricultural Credit Societies. However, in respect of all direct loans and advances granted to a borrower, all such loans will become NPA even if one loan account becomes NPA, as hitherto.
3. Please acknowledge receipt to our Regional Office concerned.
Yours faithfully,
(B.P.Vijayendra)
Chief General Manager
CAclubindia
