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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Updated Master Circular - Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances

02-Apr-2024 | RBI/2024-2025/12 DOR.STR.REC.8/21.04.048/2024-25

RBI has issued updated Master Circular- Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances.

By virtue of this notification all updates, instructions / guidelines on the subject issued up to March 31, 2024 are consolidated under this circular.

Highlights:-

1. GENERAL
2. DEFINITIONS
3. INCOME RECOGNITION
4. ASSET CLASSIFICATION
5. PROVISIONING NORMS
6. Writing-off of NPAs
7. NPA Management ? Requirement of Effective Mechanism and Granular Data
8. Early identification and reporting of stress
9. Implementation of Resolution Plan
10. Implementation Conditions for RP
11. Delayed Implementation of Resolution Plan
12. Prudential Norms
13. Supervisory Review
14. Disclosures
15. Exemptions
16. Definition of Restructuring
17. Prudential Norms
18. Provisioning Norms
19. Additional Finance
20. Income recognition norms
21. Conversion of Principal into Debt / Equity and Unpaid Interest into 'Funded Interest Term Loan' (FITL), Debt or Equity Instruments
22. Change in Ownership
23. Principles on classification of sale and lease back transactions as restructuring
24. Prudential Norms relating to Refinancing of Exposures to Borrowers
25. Takeout Finance
26. Regulatory Exemptions
27. Restructuring of frauds/willful defaulters
28. Wilful Defaulters and Non-Cooperative Borrowers
29. Dissemination of Information
30. Bank Loans for Financing Promoters? Contribution
31. Credit Risk Management
32. Registration of Transactions with CERSAI
33. Board Oversight
34. Specification of due date/repayment date
35. Consumer Education

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