What changed
The previous extension of concessions for J&K borrowers, which was set to expire on March 31, 2011, has been further extended by one year to March 31, 2012. The relaxations remain identical to those outlined in the original April 2004 circular.
What it means for you
Banks must continue to offer the same credit relaxations to borrowers in Jammu & Kashmir for another year, without any modifications. This ensures ongoing support for trade and industry in the region, but lenders should factor in the extended period when assessing portfolio risk and provisioning.
What you must do
- Issue internal instructions to all controlling and branch offices to continue the existing J&K credit relaxations until March 31, 2012.
- Ensure compliance with the original April 2004 circular's terms for all eligible borrowers in the state.
- Monitor the extended relaxation period for any impact on asset quality and provisioning requirements.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Borrowers and customers in Jammu & Kashmir, Trade and industry entities in J&K
What specific concessions are covered under this extension?
The circular does not list the concessions; it refers to the original April 2004 circular for details. Banks must follow those existing relaxations.
Does this extension apply to Regional Rural Banks?
No, the circular explicitly excludes Regional Rural Banks from its scope.