The Hindu Business Line : Classify contingencies, banks told

Mumbai March 14 Banks using floating provisions for contingencies under extraordinary circumstances will now have to classify them (contingencies) into three categories, namely, general, market and credit.

"Under the general category, there can be situations where a bank is put unexpectedly to loss due to events such as civil unrest or collapse of currency in a country. Natural calamities and pandemics may also be included in the general category," said an RBI notification.

Market category would include events such as a general meltdown in the markets, which affects the entire financial system.

"Among the credit category, only exceptional credit losses would be considered as an extraordinary circumstance," added the press release.

More Stories on : RBI & Other Central Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Pedro Malan Committee Report — Counselling the Bretton Woods twins

Rupee falls by 4 paise

LIC's yield expectations hurt bank bond issues

Canadian banks, insurers set for foray

Classify contingencies, banks told

PNB's core banking in rural branch

6.65% Govt stock fully subscribed

Bond prices steady

Call rates unchanged

Andhra Bank hikes credit card charges

Investment norms for insurance cos may be eased

SBI honours disabled women achievers

You can bank longer!

`Fiscal incentives may not go to augment total savings'