Regulatory Alerts2026-03-03
Added
BRPD-1 Circular No. 05: Instructions to be Followed in Case of Continuous Loan Renewal
This circular mandates that working capital loans must be renewed within their existing tenure, requiring the renewal process to commence at least two months prior to maturity. If external factors prevent on-time renewal, the loan may be renewed before being classified as substandard, provided reasons are documented and any excess amount is consolidated or separated into a new account rather than remaining in the working capital facility. These instructions remain valid until December 31, 2027, and supersede Circular No. 06/2025.
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