Working capital rules, gathered in one place

Working capital up to 1 crore rupees, or 5 crore for micro and small firms, may be judged on projected turnover.

named by the words working capital · RBI Para 2 · Read it in place

Working capital is 25 per cent of turnover; the borrower brings 5 and the bank lends at least 20.

named by the words Working Capital · RBI Para 2 · Read it in place

At 10 crore rupees and above, normally 80 per cent is a loan and the rest cash credit.

named by the words Cash Credit · RBI Para 3 · Read it in place

Drawings from cash credit and overdraft must stay strictly for the sanctioned purpose.

named by the words cash credit · RBI Para 4 · Read it in place

The Board must approve a bill discounting policy consistent with working capital policy.

named by the words working capital · RBI Para 8 · Read it in place

Using short term working funds for long term ends, against the terms of sanction, is diversion of funds.

named by the words working capital · RBI Para 4 · Read it in place

Bill discounting is for genuine commercial and trade bills, after proper appraisal.

named by the words Bill discount · RBI Para 8 · Read it in place

A stock statement used for drawing power must not be older than three months.

named by the words drawing power · RBI Para 13(2) · Read it in place

A term loan becomes an NPA if interest or principal is overdue for more than 90 days.

named by the words Cash Credit · RBI Para 29(1) · Read it in place

Drawings on a working capital account must be covered by current assets.

named by the words working capital · RBI Para 13(1) · Read it in place

Drawing power must be worked out from a current stock statement.

named by the words Drawing power · RBI Para 13(2) · Read it in place

The out of order test covers every overdraft product, business or not.

named by the words overdraft · RBI Para 4(7) · Read it in place

An overdraft or cash credit account becomes an NPA if it stays 'out of order'.

named by the words Cash Credit · RBI Para 29(2) · Read it in place

A bill discounted under a letter of credit need not turn bad with the rest.

named by the words bills discount · RBI Para 37 · Read it in place

A stock statement used for drawing power must not be older than three months.

named by the words drawing power · RBI Para 11(2) · Read it in place

A term loan becomes an NPA if interest or principal is overdue for more than 90 days.

named by the words Cash Credit · RBI Para 38(1) · Read it in place

Drawings on a working capital account must be covered by current assets.

named by the words working capital · RBI Para 11(1) · Read it in place

Drawing power must be worked out from a current stock statement.

named by the words Drawing power · RBI Para 11(2) · Read it in place

The out of order test covers every overdraft product, business or not.

named by the words overdraft · RBI Para 5(7) · Read it in place

An overdraft or cash credit account becomes an NPA if it stays 'out of order'.

named by the words Cash Credit · RBI Para 38(2) · Read it in place

A bill discounted under a letter of credit need not turn bad with the rest.

named by the words bills discount · RBI Para 46 · Read it in place

A stock statement used for drawing power must not be older than three months.

named by the words drawing power · RBI Para 15(2) · Read it in place

A term loan becomes an NPA if interest or principal is overdue for more than 90 days.

named by the words Cash Credit · RBI Para 42(1) · Read it in place

Drawings on a working capital account must be covered by current assets.

named by the words working capital · RBI Para 15(1) · Read it in place

Drawing power must be worked out from a current stock statement.

named by the words Drawing power · RBI Para 15(2) · Read it in place

The out of order test covers every overdraft product, business or not.

named by the words overdraft · RBI Para 5(7) · Read it in place

An overdraft or cash credit account becomes an NPA if it stays 'out of order'.

named by the words Cash Credit · RBI Para 42(2) · Read it in place

A bill discounted under a letter of credit need not turn bad with the rest.

named by the words bills discount · RBI Para 50 · Read it in place

The bank must pay interest on the smallest credit balance held in the card account.

named by the words cash credit · RBI Para 22 · Read it in place

The bank must enable the card on unified payments interface, debit cards and net banking.

named by the words working capital · RBI Para 35 · Read it in place

The card carries a working capital part and an investment credit part together.

named by the words working capital · RBI Para 3 · Read it in place

The short term part works as a revolving cash credit account.

named by the words cash credit · RBI Para 11 · Read it in place

The bank must pay interest on the smallest credit balance held in the card account.

named by the words cash credit · RBI Para 21 · Read it in place

The bank must enable the card on unified payments interface, debit cards and net banking.

named by the words working capital · RBI Para 34 · Read it in place

The card carries a working capital part and an investment credit part together.

named by the words working capital · RBI Para 3 · Read it in place

The short term part works as a revolving cash credit account.

named by the words cash credit · RBI Para 10 · Read it in place

The bank must pay interest on the smallest credit balance held in the card account.

named by the words cash credit · RBI Para 21 · Read it in place

The bank must enable the card on unified payments interface, debit cards and net banking.

named by the words working capital · RBI Para 34 · Read it in place

The card carries a working capital part and an investment credit part together.

named by the words working capital · RBI Para 3 · Read it in place

The short term part works as a revolving cash credit account.

named by the words cash credit · RBI Para 10 · Read it in place

If the borrower moves abroad, the bank may let the loan run to its original maturity.

named by the words overdraft · RBI Para 7.1 · Read it in place

A bank may give its own foreign branch a temporary rupee overdraft of up to five hundred lakhs.

named by the words overdraft · RBI Para 8 · Read it in place

This ceiling of five hundred lakhs adds up overdrafts across every branch, correspondent and head office abroad.

named by the words overdraft · RBI Para 8 · Read it in place

Overseas branch overdrafts on Vostro funding are capped at Rs.500 lakhs total.

named by the words Overdraft · RBI Part III §1.6(i) · Read it in place

Report an unresolved overdraft to RBI if it isn't cleared within five days.

named by the words overdraft · RBI Part III §1.6(i) · Read it in place

Extra credit beyond the overdraft cap needs the Reserve Bank's prior approval.

named by the words overdraft · RBI Part III §1.6(ii) · Read it in place

Overseas borrowings, including a 5-day nostro overdraft, are capped at 100% of Tier I capital or USD 10 million.

named by the words overdraft · RBI Part C §5(a) · Read it in place

An overdraft not adjusted within five days must be reported to the Reserve Bank.

named by the words Overdraft · RBI Part C §5(a) · Read it in place

Standalone Primary Dealers may borrow abroad only for operational reasons, within their own cap.

named by the words overdraft · RBI Part C §5A(a) · Read it in place

Banks may sanction one composite loan of up to 1 crore rupees covering both working capital and term needs.

named by the words working capital · RBI Para 4.2 · Read it in place

Eligible banks may give MSE borrowers a General Credit Card for working capital.

named by the words working capital · RBI Para 4.3 · Read it in place

Banks should set aside working-capital sub-limits so large borrowers can pay their MSME suppliers.

named by the words working capital · RBI Para 5.6 · Read it in place

A stock statement used for drawing power must not be older than three months.

named by the words drawing power · RBI Para 10(2) · Read it in place

Drawings on a working capital account must be covered by current assets.

named by the words working capital · RBI Para 10(1) · Read it in place

The out of order test covers every overdraft product, business or not.

named by the words overdraft · RBI Para 5(7) · Read it in place

A term loan becomes a bad loan once interest or principal is ninety days overdue.

named by the words bills purchased · RBI Para 8 · Read it in place

An overdraft or cash credit account stays over its limit for ninety days is also bad.

named by the words drawing power · RBI Para 6 · Read it in place

A revolving loan over its limit for sixty straight days is presumed to have worsened.

named by the words drawing power · RBI Para 33 · Read it in place

The bank must enable the card on unified payments interface, debit cards and net banking.

named by the words working capital · RBI Para 33 · Read it in place

The card carries a working capital part and an investment credit part together.

named by the words working capital · RBI Para 3 · Read it in place

The short term part works as a revolving cash credit account.

named by the words cash credit · RBI Para 10 · Read it in place

An account of a minor must never be allowed to go into overdraft.

named by the words overdraft · RBI Para 170 · Read it in place

On an overdraft, the closure charge cannot exceed the sanctioned limit.

named by the words Overdraft · RBI Para 313(2) · Read it in place

A debit card may not be issued on a cash credit account or a loan account.

named by the words cash credit · RBI Para 11 · Read it in place

An overdraft under Jan Dhan or a Kisan Credit Card account may still carry a debit card.

named by the words overdraft · RBI Para 11 · Read it in place

An account of a minor must never be allowed to go into overdraft.

named by the words overdraft · RBI Para 121 · Read it in place

On an overdraft, the closure charge cannot exceed the sanctioned limit.

named by the words Overdraft · RBI Para 261(2) · Read it in place

A stock statement used for drawing power must not be older than three months.

named by the words drawing power · RBI Para 15(2) · Read it in place

The out of order test covers every overdraft product, business or not.

named by the words overdraft · RBI Para 6(7) · Read it in place

An account of a minor must never be allowed to go into overdraft.

named by the words overdraft · RBI Para 233 · Read it in place

On an overdraft, the closure charge cannot exceed the sanctioned limit.

named by the words Overdraft · RBI Para 373(2) · Read it in place

For such borrowers, 60 per cent of the working capital limit must be drawn as a loan.

named by the words working capital · RBI Para 40(1) · Read it in place

Commercial paper the lender buys counts inside that loan portion.

named by the words working capital · RBI Para 40(1) · Read it in place

An account of a minor must never be allowed to go into overdraft.

named by the words overdraft · RBI Para 34 · Read it in place

On an overdraft, the closure charge cannot exceed the sanctioned limit.

named by the words Overdraft · RBI Para 172(1) · Read it in place

For such borrowers, 60 per cent of the working capital limit must be drawn as a loan.

named by the words working capital · RBI Para 92(1) · Read it in place

Commercial paper the lender buys counts inside that loan portion.

named by the words working capital · RBI Para 92(1) · Read it in place

An account of a minor must never be allowed to go into overdraft.

named by the words overdraft · RBI Para 190 · Read it in place

On an overdraft, the closure charge cannot exceed the sanctioned limit.

named by the words Overdraft · RBI Para 353(2) · Read it in place

The seller must declare no other financier has already funded these goods.

named by the words working capital · RBI Para 15 · Read it in place

It must tell the buyer's and seller's working capital banks.

named by the words working capital · RBI Para 18 · Read it in place

Senior officers must make surprise inspections of branches every quarter.

named by the words drawing power · RBI Para 51 · Read it in place

Limits, drawing power, interest rates, charges and forex rates need a set procedure for who may change them.

named by the words drawing power · RBI Para 46 · Read it in place

An account of a minor must never be allowed to go into overdraft.

named by the words overdraft · RBI Para 186 · Read it in place

On an overdraft, the closure charge cannot exceed the sanctioned limit.

named by the words Overdraft · RBI Para 353(2) · Read it in place

On tracks one and three the money may not fund working capital.

named by the words Working capital · RBI Para 4 · Read it in place

These accounts must run on credit only, with no overdraft allowed.

named by the words overdraft · RBI Para 3 · Read it in place

Banks may waive ATM fees, overdraft charges and late fees for the affected customers.

named by the words overdraft · RBI Para 6.2.3 · Read it in place

An SPD can issue one-year NCDs without a bank working-capital limit.

named by the words working capital · RBI Para 113 · Read it in place

On an overdraft, the closure charge cannot exceed the sanctioned limit.

named by the words Overdraft · RBI Para 34(2) · Read it in place

On an overdraft, the closure charge cannot exceed the sanctioned limit.

named by the words Overdraft · RBI Para 31(2) · Read it in place

A bill discounted under a letter of credit need not turn bad with the rest.

named by the words bills discount · RBI Para 37 · Read it in place

An institution cannot give working capital finance unless RBI allows it specifically.

named by the words working capital · RBI Para 28 · Read it in place

All India financial institutions cannot finance NBFCs for a list of activities named in this rule.

named by the words Bills discount · RBI Para 109 · Read it in place

The out of order test covers every overdraft product, business or not.

named by the words overdraft · RBI Para 5(5) · Read it in place

For a cash credit the bank counts the higher of the limit and the amount owed.

named by the words cash credit · RBI Para 5(3) · Read it in place

The policy must cover related party lending, property valuation and loan renewal.

named by the words cash credit · RBI Para 3(2) · Read it in place

Working capital against building material for a small contractor is outside the limit.

named by the words Working capital · RBI Para 13 · Read it in place

The Board must lay down a bill discounting policy that matches the bank's sanctioning policy.

named by the words working capital · RBI Para 179(2) · Read it in place

A bill discounted under another bank's letter of credit counts against that bank.

named by the words bill discount · RBI Para 13 · Read it in place

A bank can freely run current or overdraft accounts if banking-system exposure to the customer stays under 10 crore rupees.

named by the words overdraft · RBI Para 38(5) · Read it in place

An overdraft under Jan Dhan or a Kisan Credit Card account may still carry a debit card.

named by the words overdraft · RBI Para 11 · Read it in place

An account of a minor must never be allowed to go into overdraft.

named by the words overdraft · RBI Para 127 · Read it in place

A bill discounted under another bank's letter of credit counts against that bank.

named by the words bill discount · RBI Para 17 · Read it in place

Working capital and bill limits follow a proper appraisal and the Board approved policy.

named by the words Working capital · RBI Para 144 · Read it in place

A direct loan to a State Government and State securities carry a zero risk weight.

named by the words overdraft · RBI Para 23 · Read it in place

A bank may allow an overdraft against a customer's green deposit, under its own credit risk rules.

named by the words overdraft · RBI Para 10 · Read it in place

The loan component must be at least 60 per cent of the sanctioned working capital limit.

named by the words working capital · RBI Para 92(1) · Read it in place

Working capital and bill limits follow a proper appraisal and the Board approved policy.

named by the words Working capital · RBI Para 144 · Read it in place

A direct loan to a State Government and State securities carry a zero risk weight.

named by the words overdraft · RBI Para 32 · Read it in place

Undrawn working capital of borrowers with ₹150 crore or more of limits now converts too.

named by the words working capital · RBI Para 22 · Read it in place

Remittances and bills are covered, including SWIFT messages and overdue purchased bills.

named by the words bills purchased · RBI Para 11(4) · Read it in place

Remittances and bills are covered, including SWIFT messages and overdue purchased bills.

named by the words bills purchased · RBI Para 11(4) · Read it in place

Remittances and bills are covered, including SWIFT messages and overdue purchased bills.

named by the words bills purchased · RBI Para 11(4) · Read it in place