RBI/2008-09/219
DBOD.No.BP.BC.58
/21.04.048/2008-09 October 13, 2008 All
Scheduled Commercial Banks
(Except RRBs and LABs) Dear
Sirs, (i) Disbursal of loans against
sanctioned limits
(ii) Restructuring of dues of the Small and Medium Enterprises
(SMEs) It has
come to our notice that in view of somewhat tight liquidity conditions in the
domestic markets in the recent past, some of the banks have been averse to disbursing
working capital limits and term loans (including short-term loans) to their clients
against the sanctioned limits even in cases where the drawing power is available
in the client’s account and all the terms and conditions of the sanction of the
loan stand complied with. 2. In view of the improved liquidity
in the markets, the banks concerned are advised to review all such cases and permit
drawal of sanctioned limits, guided by their usual commercial judgment. 3.
Further, in terms of our circular DBOD.
No. BP.BC.No.37/21.04.132/2008-09 dated August 27, 2008, the prudential
guidelines on restructuring of advances have been issued. It is understood that
some of the banks have not been undertaking the restructuring of dues of the SMEs,
where warranted. The banks concerned are, therefore, also advised to consider
restructuring the dues of the SMEs, under the guidelines, on merits of the case.
Yours faithfully, (Prashant Saran)
Chief
General Manager-in-Charge |
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