Special Regulatory Treatment for Asset Classification
The special regulatory treatment for asset classification, in modification to the provisions in this regard stipulated in para 18 of the Master Circular No. RBI/2015-16/101 DBR.No.BP.BC.2/21.04.048/2015-16 on Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances, dated July 1, 2015, will be available to the borrowers engaged in important business activities, subject to compliance with certain conditions as enumerated in para 20.2 of the above mentioned master circular. Such treatment is not extended to the following categories of advances:
i. Consumer and personal advances;
ii. Advances classified as Capital market exposures;
iii. Advances classified as commercial real estate exposures. The asset classification of these three categories accounts as well as that of other accounts which do not comply with the conditions enumerated in para 20.2 of the aforesaid Master Circular, are governed by the prudential norms in this regard described in para 17 of the Master Circular.