Financial Daily from THE HINDU group of publications
Friday, Jun 25, 2004

News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Home Page - RBI & Other Central Banks
Agri-Biz & Commodities - Farm credit
Money & Banking - Non-Performing Assets


RBI announces new NPA norms for crop loans

Our Bureau

Mumbai , June 24

IN order to align the repayment dates with harvesting of crops, the RBI has decided that with effect from September 30, 2004 the recently announced revised NPA recognition norms will be applicable to all direct agricultural advances.

As per the new norms as stated in the recent credit policy, loan granted for short duration crops will be treated as NPA, if the instalment of principal or interest thereon remains overdue for two crop seasons. A loan granted for long duration crops will be treated as NPA, if the instalment of principal or interest thereon remains overdue for one crop season, said a release from the central bank.

For the purpose of these guidelines, "long duration" crops would be those with crop season longer than one year and crops, which are not "long duration" crops, would be treated as "short duration" crops.

Banks are urged to ensure that while granting loans and advances, realistic repayment schedules may be fixed on the basis of cash flows/fluidity with the borrowers. This would go a long way to facilitate prompt repayment by the borrowers and thus improve the record of recovery in agricultural advances.

More Stories on : RBI & Other Central Banks | Farm credit | Non-Performing Assets

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Singapore Air bets on Ahmedabad flight


Jet, Sahara global bid may cause flutter among foreign airlines
Reforms must create more jobs, benefit all people: PM
New gas find off Orissa coast
UK health service allegations — Ranbaxy initiates legal consultations
Reliance to acquire German firm Trevira for Rs 440 crore
It is kid's day out on car selection
MSN hots up Hotmail storage
RBI announces new NPA norms for crop loans
Consumer body digs up dirt on detergents



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line