90-day sticky assets rule for FIs

Prudential Measures

 The Reserve Bank of India in order to converge asset classification norms of banks and financial institutions (FIs) has proposed that FIs need to adopt the 90-day norm for loan impairment from the year ending March 31,2006.

 It has also asked FIs to start providing a minimum of one-fourth additional provisioning every year to meet the new norms.

 The RBI in its mid-term policy said,