The Reserve Bank of India vide circular dated 15 February, 2022 has issued clarification on prior circular on Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances for financial institutions. Loan accounts classified as NPAs may be upgraded as ‘standard’ asset only if entire arrears of interest and principal are paid by the borrower. NBFCs shall have time till September 30, 2022 to put in place the necessary systems to implement this provision.
Consultation paper on Maintenance of Record of Mandatory Communication by Regulated Entities
It is proposed that the regulated entities maybe mandated to maintain the record of all such communication, which are mandated to be communicated under the