Special provision regarding interest on bad and doubtful debts of financial institutions, banks, etc.

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..... ncial institution, scheduled bank, State financial corporation and State industrial investment corporation where its income by way of interest pertains to the following categories of bad and doubtful debts, namely:- ( a ) ( i ) Non-viable or sticky advances, i.e., where irregularities of the nature specified in sub-clause ( ii ) are noticed in the accounts of the borrowers for a period of s .....

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..... rmation required by the bank; ( 6 ) slow movement or stagnation of stocks observed during inspections; ( 7 ) low or negligible level of activity observed during inspections or suspension or closure of the business; ( 8 ) persistent delay in compliance with vital requirements like execution of documents, producing additional security when required or non-compliance with such requirement .....

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..... accounts of the borrowers are, ( 1 ) where the accounts are overdrawn beyond the drawing power or the sanctioned limit, for a temporary period; ( 2 ) instalments in respect of term-loans are overdue for less than 6 months or import bills under letters of credit or instalments under deferred payment carried are overdue for less than 3 months; ( 3 ) bills not exceeding 10% to 15% of the .....

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