RBI has withdrawn all circulars sent to Private sector banks as per delegation of powers on writing off bad debt, losses and compromise proposals. The following circular relates to this withdrawal of powers.
RBI 2012-13/357
DBOD.No.BP.BC- 68/21.04.048/2012-13
January 1, 2013
The Chairman and Managing Director/
Chief Executive Officer of
All Scheduled Commercial Banks in
Private Sector (excluding Foreign Banks)
Dear Sir,
Review of Circulars Issued to Private Sector Banks on Writing-off of Bad Debts/Losses, Compromise Proposals Delegation of Powers
Please refer to our circular DBOD.No.BC.148/16.13.100/93 dated August 13, 1993 and DBOD.No.Fol.BC.70/C.581/89 dated February 8, 1989 on the captioned subject.
2. On a review, it has been decided to withdraw the above mentioned circulars. Banks may, however, continue to be guided by the guidelines contained in our circular DBOD.No.BP.BC.81/21.01.040/95 dated July 28, 1995 and other relevant instructions in this regard. They may accordingly frame their own policy on writing-off of bad debts and compromise settlements, with the approval of Board of Directors.
Yours faithfully,
(Deepak Singhal)
Chief General Manager-in-Charge
