PRIORITY
SECTOR LENDING-TREATMENT OF CONTINGENT LIABILITIES – CLARIFICATIONS
Notification No.:
RBI/2012-13/455
Date: 22/03/2013
It has come to notice that some banks have
included contingent liabilities/off-balance sheet items as part of priority
sector target achievement.
In this connection, we clarify that this is
not in conformity with priority sector lending guidelines. Therefore, banks are
advised to declassify such accounts with retrospective effect, where a
contingent liability / off-balance sheet item is treated as a part of priority
sector target achievement.
We also clarify that all types of loans,
investments or any other item which are treated as eligible for classifications
under priority sector target/ sub-target achievement should also form part of
Adjusted Net Bank Credit.
Regards
CA. Mona Singhal
Partner
Arpit Gupta & Associates
Chartered Accountants
701, Nirmal Tower,
26, Barakhamba Road,
Connaught Place, Delhi-110001
Mobile:- +91-9873082769
Website: www.caaga.co.in
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