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Revised guidelines for compromise settlement of chronic Non-Performing Assets (NPAs) of public sector banks upto Rs 10 crore


February 05, 2004

RBI/2004/42

DBOD No. BP. BC 66 / 21.04.117/2003-2004

Chairmen and Managing Directors

of all Public Sector Banks

Dear Sir,

Revised guidelines for compromise settlement of chronic Non-Performing Assets (NPAs) of public sector banks upto Rs 10 crore


Please refer to our circular DBOD No. BP.BC. 108/ 21.04.117 / 2002-2003 dated May 23, 2003 extending the time limit for processing of applications for settlement of NPAs up to Rs. 10 crore from 31st October 2003 to 31st December 2003.

2. In the context of requests received for extending the time limit for operation of the guidelines, it has been decided, in consultation with the Government of India, that applications for one time settlement of chronic NPAs of public sector banks up to Rs. 10 crore may be received up to 31st July 2004. Consequently, the last date for processing applications received up to 31st July 2004 would also be extended to 31st October, 2004.

3. Please acknowledge receipt.

Yours faithfully,

Sd/-

(C. R. Muralidharan)

Chief General Manager-in-Charge


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