Page 52 - Banking Finance September 2020

RBI CIRCULAR

RBI

CIRCULAR

Submission of returns under Section 31 submission of the aforesaid returns to Reserve Bank on
or before September 30, 2020.
of the Banking Regulation Act, 1949
(AACS) – Extension of time (Neeraj Nigam)
Chief General Manager
RBI/2020-21/28
August 26, 2020 Ad-hoc/Short Review/Renewal of Credit
1. In terms of section 31 of the Banking Regulation Act, Facilities
1949 (“the Act”) read with Section 56 the Act [as
RBI/2020-21/27
amended by the Banking Regulation (Amendment)
Ordinance, 2020], accounts and balance-sheet referred August 21, 2020
to in section 29 of the Act together with the auditor's
report shall be published in the prescribed manner and 1. In terms of circular DBOD.No.BP.(SC).BC.98/21.04.103/
three copies thereof shall be furnished as returns to the 99 dated October 7, 1999 on Risk Management System
Reserve Bank within three months from the end of the in Banks, Scheduled Commercial Banks (SCBs) are
period to which they refer. In terms of the first proviso required to put in place a board approved credit policy,
to the above section, Reserve Bank may in any case which, inter alia, should prescribe the periodicity and
extend the said period of three months for the methodology of review/renewal of credit facilities. The
furnishing of such returns by a further period not policy should also prescribe differential time schedules
exceeding three months. for review/renewal of borrower limits so that lower rated
borrowers whose financials show signs of problems are
2. Since the aforesaid Ordinance amending, inter alia, subjected to renewal control more frequently. The
Section 31 has been notified on June 29, 2020 for the Master Circular for Urban Cooperative Banks (UCBs) on
primary (urban) co-operative banks (UCBs) and also as Management of Advances – UCBs dated July 1, 2015,
UCBs may be facing difficulties in submission of the requires all UCBs to lay down policy guidelines for
returns due to the ongoing COVID-19 pandemic, it is periodic review of the working capital limits.
considered necessary to allow more time for submission
of the aforesaid return for the financial year ended on 2. Further, in terms of the Master Circular
March 31, 2020. DBR.No.BP.BC.2/21.04.048/2015-16 dated July 1, 2015
on Prudential norms on Income Recognition, Asset
3. In view of the above, Reserve Bank hereby extends the Classification and Provisioning pertaining to Advances
said period of three months for the furnishing of the and the Master Circular DCBR.BPD. (PCB) MC No.12/
returns under Section 31 of the Act for the financial 09.14.000/2015-16 dated July 1, 2015 on Income
year ended on March 31, 2020 by a further period of Recognition, Asset Classification, Provisioning and Other
three months. Accordingly, all UCBs shall ensure
Related Matters – UCBs as applicable to SCBs and UCBs

52 | 2020 | SEPTEMBER | BANKING FINANCE