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CCP604 (B)
CCP604 (B)
CCP604 (B)
ANDHRA PRADESH
Name : Smt M. L . Kameshwari
Designation : senior Lecturer in CCP
Institute : Govt. Poly. For women,
Bheempunipatnam
Semester : VI Semester
Subject : Banking—II
Sub-Code : CCP-604(B)
Topic : Role of Non –Banking,
financial institution (11 to 12/18)
Duration : 50 minutes
Sub Topic : Prudential Norms of NBFC
Teaching Aids : PPT
CCP604(B). 65 to 66 1
Objectives
CCP604(B). 65 to 66 2
Recap:
CCP604(B). 65 to 66 3
Prudential Norms
Capital adequacy :
Minimum capital requirement raised from
present level of Rs.25 lakhs to Rs. 2 crores
Existing limits on deposit acceptance may be
continued
Income recognition :
Income recognition on the Non Performing
Assets (NPA) is allowed on cash basis only
CCP604(B). 65 to 66 4
Prudential Norms…
Asset classification
All assets should be classified
Provision for bad and doubtful debts
Exposure norms :
Norms are tightened to ensure prevention of
deployment of public deposits in high risk and
speculative avenues
CCP604(B). 65 to 66 5
Prudential Norms…
NPA norms :
Loans and advances up to 6 months and 30
days respectively
Lease and hire purchase Finance : 2
months
Restrictive norms :
Loans against own shares not allowed
CCP604(B). 65 to 66 6
Prudential Norms…
Accounting standards :
Accounting standards issued by Institute of
Chartered Accountants of India should be
strictly followed
CCP604(B). 65 to 66 7
Summary
CCP604(B). 65 to 66 8
Quiz:
c) 3 crores
d) 5 crores
e) 2 crores
f) 1 crores
CCP604(B). 65 to 66 9
Quiz
2. Income recognition on NPA is allowed
on ____________________.
CCP604(B). 65 to 66 10
Quiz
CCP604(B). 65 to 66 11
Quiz
c. True
d. False
CCP604(B). 65 to 66 12
Frequently Asked Questions
CCP604(B). 65 to 66 13