Prudential norms for Nidhis: income on loans recognised only when realised, with staged provisioning for deteriorating assets. Prudential norms require Nidhis to recognise income on loans only when realised and to reverse unrealised income on assets newly classified as non performing. Mortgage loans must be classified as Standard, Sub standard, Doubtful or Loss with prescribed provisions (no provision, 10%, 50%, 100% respectively) and collateral realisable value may be deducted where sale proceedings began within two years, capped at original assessed value. Loans secured by jewellery, government securities or deposits must be recovered within three months of default and attract 100% provision for unrealised amounts. Provisions must be charged to and disclosed in the current year's profit and loss account.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Prudential norms for Nidhis: income on loans recognised only when realised, with staged provisioning for deteriorating assets.
Prudential norms require Nidhis to recognise income on loans only when realised and to reverse unrealised income on assets newly classified as non performing. Mortgage loans must be classified as Standard, Sub standard, Doubtful or Loss with prescribed provisions (no provision, 10%, 50%, 100% respectively) and collateral realisable value may be deducted where sale proceedings began within two years, capped at original assessed value. Loans secured by jewellery, government securities or deposits must be recovered within three months of default and attract 100% provision for unrealised amounts. Provisions must be charged to and disclosed in the current year's profit and loss account.
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