RBI directs large co-op banks to report exposures above Rs 5 cr; Aims at early detection of financial distress

Mumbai, December 28: The Reserve Bank of India (RBI) has directed large cooperative banks to report all exposures of 5 crore rupees and more to the Central Repository of Information on Large Credits (CRILC). The move is aimed at early detection of financial distress.

 

 

 

The Reserve Bank has created a CRILC of 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.

"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", the Central Bank said in a statement.

 

Earlier in its bi-monthly monetary policy review this month, the RBI had announced to bring UCBs with assets of Rs 500 crore and above under the CRILC reporting framework. Aggregate exposure will include all fund-based and non-fund based exposure (like partial credit enhancement) including investment exposure on the borrower. To start with, UCBs will be required to submit CRILC report on quarterly basis with effect from December 31, 2019.