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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Latest Circulars »
 The Commissioner Of Income Tax vs. Steag Energy Services Gmbh
 Master Circular – Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM)
  RBI-Interest rates for Small Savings Schemes
 RBI-State Finances: A Study of Budgets of 2017-18 and 2018-19
 Regarding Recovery – VAT Delhi – Circular No.6/2018
 RBI-Auction of Government of India Dated Securities July 16, 2018
 Auction for Sale (Issue/Re-issue) of Government Stock (GS) July 16, 2018
 RBI-Incorporation of Name of the Purchaser on the Face of the Demand Draft
 RBI likely to extend deadline for filing of foreign investment master form
 Priority Sector Lending - Targets and Classification: Lending to non-corporate farmers – System wide average of last three years
 Exim Bank's Government of India supported Line of Credit of USD 17.50 million to the Government of the Cooperative Republic of Guyana

Disclosure Requirements on Advances Restructured by Banks and Financial Institutions
February, 04th 2013

RBI/2012-13/409
DBOD.BP.BC.No.80/21.04.132/2012-13

January 31, 2013

All Scheduled Commercial Banks
(excluding RRBs)

Dear Sir,

Disclosure Requirements on Advances Restructured by Banks and
Financial Institutions

Please refer to paragraph 16 of Master Circular on Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances dated July 2, 2012 in terms of which banks should disclose in their published Annual Balance Sheets, under "Notes on Accounts", information relating to number and amount of advances restructured, and the amount of diminution in the fair value of the restructured advances under the following categories:

  1. Standard Advances Restructured;

  2. Sub-Standard Advances Restructured; and

  3. Doubtful Advances Restructured.

Under each of the category above, advances restructured under CDR Mechanism, SME Debt Restructuring Mechanism and other categories of restructuring are required to be shown separately.

2. The Working Group (WG) constituted by RBI to Review the existing Prudential Guidelines on Restructuring of Advances (Chairman: Shri B. Mahapatra) had recommended that once the higher provisions and risk weights (if applicable) on restructured advances (classified as standard either abinitio or on upgradation from NPA category) revert back to the normal level on account of satisfactory performance during the prescribed period, such advances should no longer be required to be disclosed by banks as restructured accounts in the “Notes on Accounts” in their Annual Balance Sheets. However, the provision for diminution in the fair value of restructured accounts on such restructured accounts should continue to be maintained by banks as per the existing instructions. The WG also recommended that banks may be required to disclose:

  1. details of accounts restructured on a cumulative basis excluding the standard restructured accounts which cease to attract higher provision and risk weight (if applicable);

  2. provisions made on restructured accounts under various categories; and

  3. details of movement of restructured accounts.

3. This recommendation has been accepted in view of the fact that in terms of present guidelines, banks are required to disclose annually all accounts restructured in their books on a cumulative basis even though many of them would have subsequently shown satisfactory performance over a sufficiently long period. As such the present position of disclosures do not take into account the fact that in many of these accounts the inherent weaknesses have disappeared and the accounts are in fact standard in all respects, but continue to be disclosed as restructured advances.

4. Accordingly, banks should henceforth disclose in their published Annual Balance Sheets, under "Notes on Accounts", information relating to number and amount of advances restructured, and the amount of diminution in the fair value of the restructured advances as per the format given in the Annex. Detailed instructions relating to the disclosure are also given in theAnnex.

5. The above disclosure requirements will be effective from the financial year 2012-13.

Yours faithfully

(Deepak Singhal)
Chief General Manager-in-Charge

Encls: as above

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

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