RBI ISSUES CIRCULAR FOR PRIVATE SECTOR BANKS ON WRITING-OFF OF BAD DEBTS/LOSSES

The Reserve Bank of India (RBI) has issued a circular for private sector banks for writing off Bad Debts / Losses. It says that Private Banks may frame their own policy on writing-off of bad debts and compromise settlements, with the approval of Board of Directors. However, banks may 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.