Prudential norms for Nidhi companies: stricter revenue recognition and asset classification with mandatory provisioning and no unrealised income recognition. Prudential norms require that income on mortgage and jewel loans classified as non performing be recognised only when realised and that previously recognised unrealised income be reversed; assets must be classified as Standard, Sub standard, Doubtful or Loss with corresponding provisioning requirements, and loans secured by jewellery must be recovered or renewed within a prescribed short period or fully provided for in the current profit and loss account.
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Provisions expressly mentioned in the judgment/order text.
Prudential norms for Nidhi companies: stricter revenue recognition and asset classification with mandatory provisioning and no unrealised income recognition.
Prudential norms require that income on mortgage and jewel loans classified as non performing be recognised only when realised and that previously recognised unrealised income be reversed; assets must be classified as Standard, Sub standard, Doubtful or Loss with corresponding provisioning requirements, and loans secured by jewellery must be recovered or renewed within a prescribed short period or fully provided for in the current profit and loss account.
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