Date:06/08/2004 URL: http://www.thehindubusinessline.com/2004/08/06/stories/2004080601630800.htm

Back Compromise settlements: Lok Adalats' ceiling raised to Rs 20 lakh

Our Bureau

Mumbai , Aug 5

THE Reserve Bank of India has said that the monetary ceiling of cases for compromise settlements referred to the Lok Adalats organised by civil courts has been raised to Rs 20 lakh with immediate effect, as against the earlier limit of Rs 5 lakh.

In a circular to all scheduled commercial banks and financial institutions, the apex bank has said, that convener banks of State Level Bankers' Committee (SLBC) and lead banks of districts should give necessary publicity to the scheme through various modes under their areas of operation.

The RBI has told the urban co-operative banks, that the 90 days loan impairment norm will also be applicable to gold loans and small loans up to Rs 1 lakh effective from the year ending March 31, 2005.

In a circular issued to the chiefs of all urban co-operative banks, the apex bank said, UCBs will be required to classify an asset as non-performing if interest and/or instalment of principal remains overdue for a period of more than 90 days, without any exception.