{"id":1052,"date":"2021-05-07T06:35:15","date_gmt":"2021-05-07T06:35:15","guid":{"rendered":"https:\/\/rvkassociates.com\/blog\/?p=1052"},"modified":"2021-05-07T06:35:18","modified_gmt":"2021-05-07T06:35:18","slug":"utilisation-of-floating-provisions-counter-cyclical-provisioning-buffer","status":"publish","type":"post","link":"https:\/\/rvks.in\/blogs\/utilisation-of-floating-provisions-counter-cyclical-provisioning-buffer\/","title":{"rendered":"Utilisation of Floating Provisions\/Counter Cyclical Provisioning Buffer"},"content":{"rendered":"\n<p>Please refer to our <strong>circular DBOD.No.BP.BC.89\/21.04.048\/2005-06 dated June 22, 2006<\/strong> and <strong>DBOD.No.BP.BC.68\/21.04.048\/2006-07 dated March 13, 2007<\/strong> on creation, accounting, disclosures and utilisation of floating provisions by banks. Banks may also refer to our <strong>circular DBOD.No.BP.BC.87\/21.04.048\/2010-11 dated April 21<\/strong>, 2011 on creation and utilisation of \u2018countercyclical provisioning buffer\u2019, wherein we had advised that the buffer will be allowed to be used by banks for making specific provisions for non-performing assets, inter alia, during periods of system wide downturn, with the prior approval of RBI.<\/p>\n\n\n\n<p>2. Accordingly, in terms of our <strong>circulars DBOD.No.BP.95\/21.04.048\/2013-14 dated February 7, 2014 <\/strong>and <strong>DBR.No.BP.BC.79\/21.04.048\/2014-15 dated March 30, 2015<\/strong>, banks were allowed to utilise upto 33 per cent and 50 per cent of floating provisions\/ countercyclical provisioning buffer held by them as on March 31, 2013 and December 31, 2014 respectively, for making specific provisions for non-performing assets, as per their Board approved policy.<\/p>\n\n\n\n<p>3. In order to mitigate the adverse impact of COVID 19 related stress on banks, as a measure to enable capital conservation, it has been decided to allow banks to utilise 100 per cent of floating provisions\/ countercyclical provisioning buffer held by them as on December 31, 2020 for making specific provisions for non-performing assets with prior approval of their Boards. Such utilisation is permitted with immediate effect and upto March 31, 2022.<\/p>\n\n\n\n<p>Yours faithfully,<\/p>\n\n\n\n<p><br>(Manoranjan Mishra)<br>Chief General Manager<\/p>\n\n\n\n<p><strong>For full detail click the link below :<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.dropbox.com\/s\/gmlnrt69whqiyru\/Utilisation%20of%20floating%20Provisions.PDF?dl=0\">https:\/\/www.dropbox.com\/s\/gmlnrt69whqiyru\/Utilisation%20of%20floating%20Provisions.PDF?dl=0<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Please refer to our circular DBOD.No.BP.BC.89\/21.04.048\/2005-06 dated June 22, 2006 and DBOD.No.BP.BC.68\/21.04.048\/2006-07 dated March 13, 2007 on creation, accounting, disclosures and utilisation of floating provisions by banks. Banks may also refer to our circular DBOD.No.BP.BC.87\/21.04.048\/2010-11 dated April 21, 2011 on creation and utilisation of \u2018countercyclical provisioning buffer\u2019, wherein we had advised that the buffer will [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":357,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,14],"tags":[75,74],"class_list":["post-1052","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-notifications","category-rbi","tag-75","tag-rbi-notification"],"_links":{"self":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts\/1052","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/comments?post=1052"}],"version-history":[{"count":1,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts\/1052\/revisions"}],"predecessor-version":[{"id":1053,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts\/1052\/revisions\/1053"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/media\/357"}],"wp:attachment":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/media?parent=1052"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/categories?post=1052"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/tags?post=1052"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}