Hello This is an off-topic mail. I fail to understand any justification of posting it here. Harish Kotian. Moderator
----- Original Message ----- From: "gufran" <[email protected]> To: <[email protected]>; <[email protected]>; "arun chhabra" <[email protected]>; <[email protected]> Sent: Saturday, April 30, 2011 8:17 PM Subject: [AI] Fw: 4/30 NOTIFICATIONS FROM RBI > > ----- Original Message ----- > From: Feed My Inbox > To: [email protected] > Sent: Saturday, April 30, 2011 4:46 PM > Subject: 4/30 NOTIFICATIONS FROM RBI > > > > > NOTIFICATIONS FROM RBI > > > Compounding of interest on Agriculture Loans > > April 12, 2011 at 2:52 AM > > RBI/2010-11/474 > RPCD.CO.RRB.BC No. 59/03.05.72/2010-11 > > April 11, 2011 > > The Chairman > All Regional Rural Banks > The Chairman & Managing Director > All Sponsor Banks > > Dear Sir, > > Compounding of interest on Agriculture Loans > > Please refer to the instructions contained at > para. 5. in RBI Master circular RPCD. CO. Plan. BC. No. 10/04.09.01/2010-11 > dated July 1, 2010 on Lending to Priority Sector, addressed to Scheduled > Commercial Banks, together with the instructions contained in para. 2 of RPCD > circular RRB. BC. No. 96/ 03.05.34/ 2001-02 dated May 27, 2002, read with > para. 2 of the circular RRB. BC. No. 105/ 03.05.34/ 2001-02 dated June 11, > 2002 addressed to the RRBs, on the captioned subject. > > 2. A recent study undertaken by Regional Offices > of NABARD and RBI in select States has revealed that compounding of interest > on quarterly/ half-yearly basis, and not as per cropping/ harvesting cycle/s > on agricultural loans, was prevalent in some RRBs. In certain cases, NABARD > has also observed that RRBs have been using the software package developed by > their sponsor banks, which has no provision for segregating interest from > principal before applying the interest for the next period. Wherever manual > accounting was involved, the compounding was observed in a few cases > attributed to human error. > > 3. It is, therefore, imperative that sponsor > banks/ RRBs develop/ modify the software package to ensure that the process > of compounding of interest on agricultural loans falls in line with the > extant instructions on the subject issued to them. Also, RRBs should > re-examine the relevant cases and arrange to re-credit the excess interest > wrongly charged in the accounts, under advice to our respective Regional > Offices and to NABARD. > > Yours faithfully, > > (C.D.Srinivasan) > Chief General Manager > > > > > > > > > This email was sent to [email protected]. > Delivered by Feed My Inbox > PO Box 682532 Franklin, TN 37068 Create Account > Unsubscribe Here > > > > > > To unsubscribe send a message to > [email protected] > with the subject unsubscribe. > > To change your subscription to digest mode or make any other changes, please > visit the list home page at > http://accessindia.org.in/mailman/listinfo/accessindia_accessindia.org.in > > To unsubscribe send a message to [email protected] with the subject unsubscribe. To change your subscription to digest mode or make any other changes, please visit the list home page at http://accessindia.org.in/mailman/listinfo/accessindia_accessindia.org.in
