REF. DBS.FID No. C. 1 / 01.10.00/2001-02

July 13, 2002

The CEOs of all India term lending and refinancing institutions

Dear Sir,

Capital Adequacy Norms - Half Yearly Statement of
Capital to Risk-Weighted Asset Ratio ( CRAR )- Discontinuance

In terms of paragraph 4 of our Circulars FIC. No. 842 / 01.02.00/ 93-94 dated March 29, 1994 addressed to term lending institutions and FIC. No. 641 /01.10.00 / 95-96 dated March 7, 1996 addressed to refinancing institutions on the captioned subject, the FIs are required to submit to us the Capital to Risk-Weighted Asset Ratio ( CRAR ) statement in the prescribed format, as early as possible, after finalisation of accounts. The statements are to be furnished at half-yearly intervals i.e., as on 31st March and 30th September (30th June and 31st December in case of NHB).

2. The Prudential Supervisory Reporting System (PSRS), instituted in terms of our Circular DBS.FID.No. 2 / 10.06.00/ 99-2000 dated July 28, 1999, as subsequently enhanced and modified vide our Circular DBS.FID.No.C-7/10.06.00/2001-02 dated October 20, 2001 also includes a comprehensive Return on Capital Adequacy ( RCA ) which is now submitted at quarterly intervals. Since the PSRS has now stabilised, the rationale underlying the prescription of half-yearly reporting of CRAR, by the FIs, as stated above, is no longer valid.

3. It has, therefore, been decided that submission by FIs of half- yearly statements in respect of CRAR , referred to para 1 above, to RBI would no longer be necessary. FIs may accordingly discontinue submission of these statements to us with effect from half year ended March 31, 2002.

4. Please acknowledge receipt.

Yours faithfully,

 

Sd/-
( K.C. Bandyopadhyay )
Chief General Manager