Regulation and Control on Deployment of Funds (144)

Regulation and Control on Deployment of Funds (144)

·         The Present CRR and SLR requirement are 3% and 25% respectively.

·         New prudential Accounting Norms cover Capital Adequacy, Income Recognition, Asset Classification and Provisioning

Capital Adequacy

Income Recognition and Asset Classification / Provisioning

·         No income can be taken to Profit and Loss account if the interest / installment in a borrower account remains unpaid for a period of more than two quarters from the ‘past due’ date. The account has to be designated as NPA.

·         Banks are required to classify accounts according to its performing or non-performing. While interest on performing assets can be taken to P & L, interest on NPA cannot be taken to P & L

·         Banks has to make provisions for NPA.  Longer the NPA, higher the

provisioning.

Deregulation of Interest Rates

Post-Reforms Regulation of Banks

On-site Inspections and Off-Site Surveillance

Asset – Liability Management

Prudential Regulatory Measures

An advance is required to be classified as NPA if it is interest / installment is not received for 90 days.

Reserve bank has also laid down Prudential Exposure Limits under which a bank cannot lend in excess of 15% of its paid-up capital and free reserves to a single borrower and 40% to a group of borrowers.

The first Tranche of OSMOS returns

DSB1	Monthly report on Asset Liability and Off Balance Sheet Exposures
DSB2	Quarterly report on Capital Adequacy
DSB3	Quarterly Operating Results
DSB4	Monthly report on Asset Quality
DSB5	Quarterly Report on Large Credits
DSB6	Quarterly Report on Connected Lending
DSB7	Half-Yearly Report on ownership and Control

The Second Tranche of OSMOS returns
DSB 8	Monthly Return on Structural Liquidity
DSB 9	Monthly Report on Interest Rate Sensitivity
DSB 10	Monthly Report on Sensitivity to Interest Rates – Forex
DSB 11	Monthly Report on Maturity and Positio
DSB 12	Quarterly  Report on  Operations  of  subsidiaries,  Associates,  Joint
	Ventures