RBI/2004-05/482
RPCD.CO.RF.BC.No.103/07.37.02/2004-05
May 30, 2005
All State/District Central Co-operative Banks
and Regional Rural Banks
Dear Sir,
Inter Branch Adjustment Accounts- Provisioning
for Net Debit Balances
Please refer to our circular RPCD.RF.BC.No 59/07.37.02/2003-04
RBI/2004/26 dated January 05, 2004 on the above subject. As advised therein,
all state/central co-operative banks and regional rural banks were required
to segregate all the debit and credit entries in inter branch account pertaining
to period up to March 31, 2001 outstanding as on March 31, 2004 and arrive at
a net position. They were also required to make graded provisioning thereagainst
in such a way that full provisioning would be made by the year ending March
2006.
2. As regards fresh entries that might originate
on or after April 1, 2004, we advise that net debit position will attract 100
per cent provisioning in respect of those entries that remain outstanding for
more than six months.
3. The contents of this circular may be placed
before the board of your bank.
4. Please acknowledge receipt to our concerned
Regional Office.
Yours faithfully,
(Molina Chowdhury)
Deputy General Manager
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