Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to Advances - Projects under Implementation

RBI/2019-20/216
DoR.NBFC (PD).CC.No.110/03.10.001/2019-20

April 17, 2020

All Non-Banking Financial Companies

Madam/Dear Sir,

Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to Advances - Projects under Implementation

Please refer to paragraph 25 of Master Direction – Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016; and paragraph 25 of Master Direction – Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 on ‘Norms for restructuring of advances’. The Reserve Bank has issued guidelines to banks on deferment of date of commencement of commercial operations (DCCO) for projects in commercial real estate (CRE) sector vide circular number DOR.No.BP.BC.33/21.04.048/2019-20, dated February 07, 2020.

2. In this connection, it has been decided to extend the above-mentioned guidelines issued to banks, mutatis mutandis, to NBFCs as well.

3. The Master Directions are being modified accordingly.

Yours faithfully

(Manoranjan Mishra)
Chief General Manager