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I. Review of the status of issues discussed at
the 21st meeting of SAC held on 24th February,
2006, based on the statements of the Deputy
Governor, RBI in the meeting on each of the
issues
A detailed note is annexed as Annexure-I.
II. Other issues for discussion
1. Relaxation in additional provisioning
norms of 2% in respect of standard assets of
personal loans
for housing beyond Rs.20 lacs and commercial real estate
loans, and loans against shares.
Personal loans, housing loans and loans to
individuals against security of shares may be
exempted from the provision.
2. Revised provisioning schedule in respect
of advances under doubtful category
Maximum provisioning requirement for loan
accounts in a category may be prescribed as 60%
only as against 100% as per RBI instructions.
3.i) Extending limits in respect of
unsecured advances of Gr.I banks to Gr.II banks
also
Since there is hardly any appreciable
difference in financial parameters in Gr.I &
Gr.II banks, the limits available to Gr.I banks
for unsecured advances may be extended to Gr.II
also.
ii) Inclusion of cheque purchases under
overall limit of unsecured advances
Urban banks may be permitted to avail of
permission for cheque purchase up to the
unsecured advanced limits without any specific
sub-limit for them.
iii) The overall limits for unsecured loans
may be fixed at 25% of the total advances as
against 15% that is prescribed to be attained by
March, 2007.
4. Reduction in provisioning norms in
respect of Gold loans or loans with gold as
collateral security as well as permission to
urban cooperative banks to sanction gold loans
with bullet payments of one year or two years
duration (inclusive of interest)
5. Announcement of standard guidelines by
RBI for negotiated settlement scheme for
scheduled urban cooperative banks and
non-scheduled urban cooperative banks for
adoption by the RCS of all the
states.
6. Streamlining procedure for merger of
banks in order to reduce the time taken for
approvals particularly when the mergers
involved banks from different states and those
under Multi State Act.
7. Permission to select scheduled urban
cooperative banks for having CSGL account with
RBI for non- scheduled banks and for opening of
demat accounts as before.
8. Permission to scheduled urban cooperative
banks to sell gold coins on the counters like
commercial banks.
9. Continuation of 180 days NPA norms for
Tier-I banks and 180 days NPA norms in respect
of small loans and gold loans for Tier-II banks.
10.Opportunity to banks to make corrections
within 3 months, of the minor irregularities
before declaring them as Gr.II banks. |
