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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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