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Master Circular: Prudential Norms on Income Recognition, Asset Classification & Provisioning

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/62 · issued 01 Jul 2013 · ~1 min read
Quick answerRBI consolidated all prudential norms on income recognition, asset classification, and provisioning for advances as of June 30, 2013. This circular updates the previous master circular and applies to all commercial banks except RRBs.

What changed

This master circular replaces the July 2, 2012 version, incorporating all instructions issued up to June 30, 2013. It consolidates guidelines on NPA classification, provisioning rates, restructuring, and sale of financial assets to SCs/RCs.

What it means for you

Banks must align their internal policies with the updated norms for classifying assets as substandard, doubtful, or loss, and for provisioning accordingly. The circular also covers restructuring guidelines and sale of NPAs, impacting credit risk management and capital adequacy.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

All commercial banks (excluding RRBs), Credit risk management teams, Loan operations and NPA management units, Internal audit and compliance departments

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the effective date of this master circular?

The circular is dated July 1, 2013, and consolidates instructions issued up to June 30, 2013.

Does this circular apply to Regional Rural Banks?

No, the circular explicitly excludes RRBs from its scope.

Where can I find the detailed annexures and previous circulars referenced?

The master circular is available on RBI's website, and Annex 7 lists the circulars consolidated in this document.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1087: DBOD.No.BP.BC.1/21.04.048/2013-14 — "Master Circular - Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances" d”
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/62 DBOD.No.BP.BC.1/21.04.048/2013-14 July 1, 2013 All Commercial Banks (excluding RRBs) Dear Sir Master Circular - Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances Please refer to the Master Circular No. DBOD.No.BP.BC.9/21.04.048/2012-13 dated July 2, 2012 consolidating instructions / guidelines issued to banks till June 30, 2012 on matters relating to prudential norms on income recognition, asset classification and provisioning pertaining to advances. 2. The Master Circular has now been suitably updated by incorporating instructions issued up to June 30, 2013 and is attached. It has also been placed on the RBI web-site ( http://www.rbi.org.in ). We advise that this revised Master Circular consolidates the instructions contained in the circulars listed in the Annex 7 . Yours faithfully (Chandan Sinha) Principal Chief General Manager Encl.: As above MASTER CIRCULAR - PRUDENTIAL NORMS ON INCOME RECOGNITION, ASSET CLASSIFICATION AND PROVISIONING PERTAINING TO ADVANCES TABLE OF CONTENTS Para No.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/62 · issued 01 Jul 2013. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8128&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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