Aggregate average advances method governs deduction for provision of bad and doubtful debt for rural branches of scheduled banks.

Rule 22 prescribes the method for computing the aggregate average advances of the rural branches of a scheduled bank for the purpose of deduction for provision of bad and doubtful debt under section 31(1), Table Sl. No. 1. The calculation is based on month-end outstanding advances for each rural branch, which are aggregated, divided by the number of months considered, and then combined across all rural branches. The expressions "rural branch" and "scheduled bank" are given the meanings assigned in the relevant definitional provisions.

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