RBI / 2006-07 / 120
RPCD.PLFS.No.BC. 21 /05.05.02/2006-07
September 04, 2006
Chairman & Managing Director/Chief Executive Officer
All Scheduled Commercial Banks
Dear Sir,
Guidelines on Relief Measures to be extended by Banks in Areas Affected by
Natural Calamities
Please refer to paragraph 7(iii) of the Annex
to our Circular RPCD.CO.PLFS.No.BC.16/05.04.02/
2006-07 dated August 9, 2006, which deals with restructuring of existing
loans of borrowers affected by natural calamities.
2. Instructions on moratorium, maximum repayment
period, additional collateral for restructured loans and asset classification
in respect of fresh finance will be applicable to all affected restructured
borrowal accounts, including accounts of industries and trade, besides agriculture.
3. Asset classification of the restructured
accounts as on the date of natural calamity will continue if the restructuring
is completed within a period of three months from the date of natural calamity.
The restructured accounts will be governed by the guidelines applicable to such
accounts as contained in paragraphs 4.2.14 to 4.2.16 of the master circular
DBOD. No. BP. BC. 15 / 21.04.048 / 2006-07 dated July 01, 2006. The guidelines
applicable to ‘sub-standard’ accounts will apply, mutatis mutandis, to
doubtful accounts.