RBI / 2004 / 62

/REF. DBS. FID. No. C-13 / 01.02.00 / 2003-04

The CEOs of the all-India Term Lending and Refinancing Institutions

(Exim Bank, IDBI, IDFC Ltd., IFCI Ltd., IIBI Ltd., NABARD, NHB, SIDBI and TFCI Ltd.)

Dear Sir,

Revised guidelines for compromise settlement of chronic

Non Performing Assets (NPAs) up to Rs. 10 crore

Please refer to our Circular DBS. FID. No. C-15 / 01.02.00 / 2002-03 dated May 30, 2003 on the above subject. In terms of paragraph 2 of our aforesaid Circular, the last date for receipt of applications from borrowers was extended up to the close of business on September 30, 2003 and the date of completion of processing of applications under the revised guidelines was extended up to December 31, 2003.

2. We advise that it has since been decided, in consultation with the Government of India, that the applications for one time settlement (OTS) of chronic NPAs up to Rs. 10 crore may be received up to July 31, 2004. Consequently, the last date of processing the applications received up to July 31, 2004 would also be extended to October 31, 2004.