Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: TDS :: articles on VAT and GST in India :: cpt :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: due date for vat payment :: ACCOUNTING STANDARDS :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
« Latest Circulars »
 Exim Bank's Government of India supported Line of Credit of USD 52.30 million to the Government of the Republic of Mauritius
 RBI-Formation of a new district in the State of Haryana - Assignment of Lead Bank Responsibility
 RBI proposes fresh Regulations under Foreign Exchange Management Act, 1999 for Cross Border Mergers: Invites comments from stakeholders
 Decrease in Foreign Investment limit/ceiling under the PIS in Indian Companies from 49% to 47% - M/s Ujjivan Financial Services Limited
 RBI launches the May 2017 Round of Inflation Expectations Survey of Households
  RBI announces auction of a 15-days Government of India Cash Management Bill
 Auction of Government of India Dated Securities April 24, 2017
 RBI- Compliance with Ghosh Committee Recommendations
 RBI announces auction of a 15-days Government of India Cash Management Bill
  Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 - Amended
 Minutes of the Monetary Policy Committee Meeting April 5-6, 2017

RBI-Dispensing with No Due Certificate for lending by banks
January, 31st 2015

RBI/2014-15/430
FIDD.CO.LBS.BC.No.49/02.01.001/2014-15

January 28, 2015

The Chairmen & Managing Directors
All Scheduled Commercial Banks (including RRBs)

Dear Sir/Madam,

Dispensing with ‘No Due Certificate’ for lending by banks

Please refer to our circular RPCD.LBS (SAA).BC.No.62/08.01.00/2004-05 dated December 8, 2004 on Relaxation in Service Area norms. Further, in terms of circular RPCD.PLFS.BC.No.85/05.04.02/2006-07 dated April 30, 2007 on ‘Simplification of the Procedures and Processes for Obtaining Agricultural Loans’, banks were advised to dispense with the requirement of ‘No Due Certificate’ for small loans up to Rs.50,000 to small and marginal farmers, share-croppers and the like and, instead, obtain self-declaration from the borrower.

2. Reference is also invited to circular RPCD.GSSD.BC.No.1/09.01.01/2012-13 dated July 02, 2012 wherein for lending under Government Sponsored Scheme SGSY (now NRLM), if the Service Area branch does not issue ‘No Due Certificate’ within 15 days from the date of receipt of application from the borrower, the borrowers are free to approach any branch in the block for their credit requirements.

3. In this connection, we have been receiving complaints from borrowers as banks are refusing to grant loans without ‘No Due Certificate’, especially in rural and semi-urban areas. In order to ensure hassle free credit to all borrowers, especially in rural and semi-urban areas and keeping in view the technological developments and the different ways available with banks to avoid multiple financing, banks are advised to dispense with obtaining ‘No Due Certificate’ from the individual borrowers (including SHGs & JLGs) in rural and semi-urban areas for all types of loans including loans under Government Sponsored Schemes, irrespective of the amount involved unless the Government Sponsored Scheme itself provides for obtention of ‘No Dues Certificate’.

4. Banks may kindly note that while Service Area Approach continues to be applicable for Government Sponsored Schemes, the borrower is free to approach any bank branch in his service area for obtaining credit under Government Sponsored Schemes.

5. Banks are encouraged to use an alternative framework of due diligence as part of credit appraisal exercise other than the ‘No Due Certificate’ which could, among others, consist of one or more of the following:

  • Credit history check through credit information companies

  • Self declaration or an affidavit from the borrower

  • CERSAI registration

  • Peer monitoring

  • Information sharing among lenders

  • Information search (writing to other lenders with an auto deadline)

6. Banks are also advised to submit credit information/data to all Credit Information Companies (CICs), as required in terms of extant instructions issued by RBI.

Yours faithfully

(A. Udgata)
Principal Chief General Manager

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions