April 30, 2001

DBOD.BP. BC. 113 / 21.04.048/2000-01

All Commercial Banks
(excluding RRBs)

Dear Sir,

Please refer to our circular DBOD.No.BP.BC.98/21.04.048/2000-01 dated March 30, 2001. We advise that paragraph 6 of our circular mentioned above may be amended to read as under:-

6. The foregoing changes in the norms would be applicable only to standard and sub-standard accounts which are subjected to restructuring / rescheduling / renegotiation of terms subsequent to the date of issue of these instructions. However, banks would have the option to adopt the foregoing norms for the standard and sub-standard accounts which have been subjected to restructuring / rescheduling / renegotiation of terms even prior to issue of these instructions but during the financial year 2000-01.

Thus, it would be observed that though the application of the aforesaid norms would continue to be compulsory with effect from 30 March 2001, banks have the option to adopt these norms retrospectively as well, but only for the financial year 2000-01.

Yours faithfully

(B .Mahapatra)
General Manager