Tally for CAs in Industry Silver Edition (Single User) Tally Renewal (Auditor Edition) Need Tally for Clients? (Tie-up with us!!!)
Open DEMAT Account with in 24 Hrs and start investing now!
Latest Circulars »
Open DEMAT Account in 24 hrs
 Implementation of Section 51A of UAPA, 1967: Updates to UNSCs 1267/ 1989 ISIL (Daesh) & Al-Qaida Sanctions List: Amendment of one entry
 Minutes of the Monetary Policy Committee Meeting, June 2 to 4, 2021
 RBI grants In-principle approval to Centrum Financial Services Limited to set up a Small Finance Bank
 Liberalised Remittance Scheme for Resident Individuals Reporting
 Directions under Section 35 A of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) Sikar Urban Co-operative Bank Ltd, Sikar, Rajasthan- Extension of validity
  Usage of Automated Teller Machines / Cash Recycler Machines Review of Interchange Fee and Customer Charges
 RBI announces Third Tranche of Open Market Purchase of Government of India Securities and State Development Loans under G-sec Acquisition Programme (G-SAP 1.0)
 Usage of Automated Teller Machines / Cash Recycler Machines Review of Interchange Fee and Customer Charges
 Notification No.70/2021 u/s 35(1)(ii)/(iii) of the Income-tax Act, 1961 in the case of M/s Indian Institute of Technology (IIT), Bhilai
 Mormugao Port Trust, Headland Sada, Goa
 Transactions in Government securities by Foreign Portfolio Investors: Reporting

Utilisation of Floating Provisions/Counter Cyclical Provisioning Buffer
May, 06th 2021

RBI/2021-22/28
DOR.STR.REC.10/21.04.048/2021-22

May 5, 2021

All Scheduled Commercial Banks
(Excluding Regional Rural Banks and Payments Banks)

Dear Sir/ Madam,

Utilisation of Floating Provisions/Counter Cyclical Provisioning Buffer

Please refer to our circular DBOD.No.BP.BC.89/21.04.048/2005-06 dated June 22, 2006 and DBOD.No.BP.BC.68/21.04.048/2006-07 dated March 13, 2007 on creation, accounting, disclosures and utilisation of floating provisions by banks. Banks may also refer to our circular DBOD.No.BP.BC.87/21.04.048/2010-11 dated April 21, 2011 on creation and utilisation of ‘countercyclical provisioning buffer’, wherein we had advised that the buffer will be allowed to be used by banks for making specific provisions for non-performing assets, inter alia, during periods of system wide downturn, with the prior approval of RBI.

2. Accordingly, in terms of our circulars DBOD.No.BP.95/21.04.048/2013-14 dated February 7, 2014 and DBR.No.BP.BC.79/21.04.048/2014-15 dated March 30, 2015, banks were allowed to utilise upto 33 per cent and 50 per cent of floating provisions/ countercyclical provisioning buffer held by them as on March 31, 2013 and December 31, 2014 respectively, for making specific provisions for non-performing assets, as per their Board approved policy.

3. In order to mitigate the adverse impact of COVID 19 related stress on banks, as a measure to enable capital conservation, it has been decided to allow banks to utilise 100 per cent of floating provisions/ countercyclical provisioning buffer held by them as on December 31, 2020 for making specific provisions for non-performing assets with prior approval of their Boards. Such utilisation is permitted with immediate effect and upto March 31, 2022.

Yours faithfully,

(Manoranjan Mishra)
Chief General Manager

Home | About Us | Terms and Conditions | Contact Us
Copyright 2021 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting