Special provision regarding interest on bad and doubtful debts of financial institutions, banks, etc.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ncial institution, scheduled bank, State financial corporation and State industrial investment corporation where its income by way of interest pertains to the following categories of bad and doubtful debts, namely:- (a) (i) Non-viable or sticky advances, i.e., where irregularities of the nature specified in sub-clause (ii) are noticed in the accounts of the borrowers for a period of six m....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... other information required by the bank; (6) slow movement or stagnation of stocks observed during inspections; (7) low or negligible level of activity observed during inspections or suspension or closure of the business; (8) persistent delay in compliance with vital requirements like execution of documents, producing additional security when required or non-compliance w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....larities referred to in sub-clause (i) in the accounts of the borrowers are, (1) where the accounts are overdrawn beyond the drawing power or the sanctioned limit, for a temporary period; (2) instalments in respect of term-loans are overdue for less than 6 months or import bills under letters of credit or instalments under deferred payment carried are overdue for less than 3 mont....