Regulatory Alerts2012-06-14
Added · Updated
Master Circular on Loan Rescheduling
This circular consolidates and updates instructions for loan rescheduling, requiring banks to establish Board-approved policies that prohibit routine rescheduling and restrict it for unproductive sectors. It mandates specific down payment thresholds for term loans (ranging from 10% to 50% depending on rescheduling frequency) and sets absolute maximum time limits for rescheduling continuous, demand, and fixed-term loans based on their classification as Sub-standard, Doubtful, or Bad/Loss. The document further stipulates that rescheduled loans must be reported to the Credit Information Bureau with specific codes (RS-1/2/3) and prohibits further rescheduling after the third instance, while allowing exceptions for export-oriented garments and fertilizer importers under defined conditions.
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