Executive Summary:
This document from the Reserve Bank of India (RBI) mandates that Primary Urban Cooperative Banks (UCBs) with total assets of ₹500 crore and above must report credit information to the Central Repository of Information on Large Credits (CRILC). This includes classifying accounts as Special Mention Accounts (SMA). The reporting is effective from December 31, 2019, and will be done quarterly.
Key Points / Main Content:
* **Reporting Requirement:**
* UCBs with total assets of ₹500 crore and above (as of March 31st of the previous financial year) must report to CRILC.
* Report credit information on borrowers with aggregate exposures of ₹5 crore and above.
* Aggregate exposure includes fund-based, non-fund-based, and investment exposure.
* **Special Mention Account (SMA) Classification:**
* UCBs must classify loan/advance accounts as SMA based on the following overdue criteria:
* SMA-0: Principal/interest/any amount wholly/partially overdue for 1-30 days.
* SMA-1: Principal/interest/any amount wholly/partially overdue for 31-60 days.
* SMA-2: Principal/interest/any amount wholly/partially overdue for 61-90 days.
* For revolving credit facilities (e.g., cash credit):
* SMA-1: Outstanding balance continuously exceeding the sanctioned limit/drawing power (whichever is lower) for 31-60 days.
* SMA-2: Outstanding balance continuously exceeding the sanctioned limit/drawing power (whichever is lower) for 61-90 days.
* **Reporting Modalities:**
* CRILC report submission is required quarterly, starting December 31, 2019.
* Detailed operating instructions will be issued separately by the Department of Supervision, RBI.
* **Data Accuracy:**
* UCBs must ensure data accuracy and integrity in their submissions.
* Failure to do so may result in penal action under the Banking Regulation Act, 1949.
Impact Analysis:
* **Primary Urban Cooperative Banks (UCBs):**
* Impact: UCBs with assets of ₹500 crore and above will need to implement systems for identifying and classifying SMA accounts and reporting credit information to CRILC. They must adhere to reporting timelines and ensure data accuracy.
* Action Required: UCBs need to classify loans/advances accounts as SMA as specified, prepare and submit CRILC reports quarterly starting December 31, 2019, and await detailed operating instructions from the Department of Supervision, RBI.
* **Borrowers of UCBs:**
* Impact: Borrowers with aggregate exposures of ₹5 crore and above from the specified UCBs will have their credit information reported to CRILC. This may affect their credit profile and future access to credit.
* Action Required: No direct action required, but awareness of the new reporting framework is advisable.
* **Reserve Bank of India (RBI):**
* Impact: The RBI will receive and manage the CRILC data from UCBs, enhancing its oversight and early warning capabilities regarding financial distress in the cooperative banking sector.
* Action Required: The Department of Supervision, RBI, needs to issue detailed operating instructions for CRILC reporting by UCBs.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking system.
Primary Urban Cooperative Banks (UCBs): Cooperative banks operating in urban areas in India, regulated by the Reserve Bank of India.
Central Repository of Information on Large Credits (CRILC): A database maintained by the Reserve Bank of India to collect and monitor information on large credits extended by banks and financial institutions.
Special Mention Account (SMA): An account exhibiting signs of incipient stress, where the borrower is defaulting in timely servicing of debt obligations but not yet classified as Non-Performing Asset (NPA).
Banking Regulation Act, 1949: An act of the Parliament of India to regulate banking companies in India.
Department of Supervision, Reserve Bank of India: A department of the Reserve Bank of India responsible for supervising banks and financial institutions.
Mumbai, Maharashtra: City in India where the central office of Reserve Bank of India is located.
Neeraj Nigam: Chief General Manager at Reserve Bank of India.
भारतीय �रज़वर् बक�
__________________________RESERVE BANK OF INDIA________________________
www.rbi.org.in
RBI/2019-20/125
DOR (PCB).BPD.Cir.No.7/13.05.000/2019-20 December 27, 2019
The Chief Executive Officer
All Primary (Urban) Co-operative Banks
Madam / Dear Sir,
Reporting of Large Exposures to Central Repository of Information on Large Credits
(CRILC) - UCBs
Please refer to paragraph 2 of the Statement on Developmental and Regulatory Policies dated
December 5, 2019 on ‘Primary (Urban) Co-operative Banks - Reporting to Central Repository
of Information on Large Credits (CRILC)’ (extract enclosed).
2. It has been decided that Primary (Urban) Co-operative Banks (UCBs) having total assets
of ₹500 crore and above as on 31st March of the previous financial year shall report credit
information, including classification of an account as Special Mention Account (SMA), on all
borrowers having aggregate exposures of ₹5 crore and above with them to Central Repository
of Information on Large Credits (CRILC) maintained by the Reserve Bank. Aggregate
exposure shall include all fund-based and non-fund based exposure, including investment
exposure on the borrower.
3. Special Mention Account (SMA)
Special Mention Account (SMA) is an account which is exhibiting signs of incipient stress
resulting in the borrower defaulting in timely servicing of her debt obligations, though the
account has not yet been classified as NPA as per the extant RBI guidelines. As early
recognition of such accounts will enable banks to initiate timely remedial actions to prevent
their potential slippages into NPAs, it is advised that UCBs having total assets of ₹500 crore
and above as on 31st March of the previous financial year shall take necessary steps to classify
loans/advances accounts as SMA, as under:
Basis for classification
SMA Sub-
Principal or interest payment or any other amount wholly or
categories
partially overdue for
SMA-0 1-30 days
SMA-1 31-60 days
SMA-2 61-90 days
िविनयमन िवभाग, क��ीय कायार्लय, सी-7,पहली मंिज़ल, बान्�ा-कुलार् सकं ुल, बान्�ा (पूवर्), मुंबई - 400051, भारत
फोन: (022) 26571112; ई मेल: cgmdcbrco@rbi.org.in
Department of Regulation, Central Office, C-7, 1st Floor, Bandra-Kurla Complex, Mumbai - 400051, India
Phone: (022) 26571112; E-mail: cgmdcbrco@rbi.org.in
ब�क िहन्दी म� प�ाचार का स्वागत करता ह ै—
चेतावनी: भारतीय �रज़वर् ब�क �ारा ई-मेल, डाक, एसएमएस या फोन कॉल के ज�रये कोई भी �ि�गत जानकारी जैसे ब�क खाते का ब्यौरा, पासवड र्आ�द नह� माँगा जाता ह।ै यह धन रखने या
दने े का �स्ताव भी नह� करता ह।ै ऐसे �स्ताव� का �कसी भी �कार से जवाब मत दीिजए।
Caution: RBI never sends mails, SMSs or makes calls asking for personal information like bank account details, passwords, etc.
It never keeps or offers funds to anyone. Please do not respond in any manner to such offers.In case of revolving credit facilities like cash credit, the SMA sub-categories will be as follows:
Basis for classification
SMA Sub- Outstanding balance remains continuously in excess of the
categories sanctioned limit or drawing power, whichever is lower, for a
period of
SMA-1 31-60 days
SMA-2 61-90 days
4. To start with, UCBs will be required to submit CRILC Report on quarterly basis with effect
from December 31, 2019. Detailed operating instructions will be issued shortly by Department
of Supervision, Reserve Bank of India.
5. UCBs should take utmost care about data accuracy and integrity while submitting the
information /data on large credit to RBI, failing which penal action as per the provisions of the
Banking Regulation Act, 1949 may be taken.
Yours faithfully,
(Neeraj Nigam)
Chief General Manager
Enclosure: As above
- 2 -Extract from the fifth Bi-monthly Monetary Policy Statement, 2019-20 announced on
December 05, 2019
2. Primary (Urban) Co-operative Banks - Reporting to Central Repository of Information
on Large Credits (CRILC)
The Reserve Bank has created a Central Repository of Information on Large Credits (CRILC)
of scheduled commercial banks, all India financial institutions and certain non-banking
financial companies with multiple objectives, which, among others, include strengthening
offsite supervision and early recognition of financial distress. With a view to building a similar
database of large credits extended by primary (urban) co-operative banks (UCBs), it has been
decided to bring UCBs with assets of ₹500 crores and above under the CRILC reporting
framework. Detailed instructions in this regard will be issued by December 31, 2019.
- 3 -