RBI tells banks to streamline realty valuation

ocedure for realistic valuation of fixed assets and also for empanelment of valuers for the purpose.  Banks should have board-approved policies in place for valuation of properties, including collaterals accepted for their exposures and the valuation should be done by professionally qualified independent valuers with no direct or indirect interest.  Banks have been asked to obtain a minimum of two independent valuation reports for properties valued at Rs 50 crore or above.  The RBI said the existing norms on capital adequacy permit banks to include revaluation reserves at a discount of 55 per cent as part of tier-II capital.  In view of this, it is necessary that revaluation reserves represent true appreciation in the market value of properties and banks have in place a comprehensive policy for revaluation of fixed assets owned by them.  The policy should also cover the disclosure required to be made in the