What changed
The previous master circular dated July 1, 2009 was updated to include all instructions issued up to June 30, 2010. The revised circular consolidates these instructions into a single document, replacing earlier circulars listed in Annex 9.
What it means for you
Banks must now follow the updated master circular for classifying assets as NPA, recognizing income, and making provisions. The circular also includes guidelines on sale/purchase of NPAs, restructuring of advances, and special regulatory treatment for certain restructured assets.
What you must do
- Review and update internal policies to align with the revised master circular.
- Ensure all staff handling credit and NPA management are trained on the updated norms.
- Verify that asset classification and provisioning practices comply with the new guidelines.
- Maintain documentation for any restructuring or sale of NPAs as per the circular's requirements.
Who it affects
All commercial banks (excluding RRBs), Credit risk and NPA management teams, Loan officers and relationship managers, Compliance and audit departments
What is the effective date of this master circular?
The circular is dated July 1, 2010, and consolidates instructions issued up to June 30, 2010.
Does this circular apply to Regional Rural Banks (RRBs)?
No, the circular explicitly excludes RRBs from its scope.
Where can I find the full text of the master circular?
The circular is available on the RBI website at http://www.rbi.org.in.