Sme & Consumer Prs -

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PRUDENTIAL REGULATIONS

Prudential regulation is regulation of deposit taking institutions and supervision of

the conduct of these institutions and which sets down requirements that limit their risk

taking.

PRUDENTIAL REGULATIONS FOR SMALL & MEDIUM ENTERPRISE

FINANCING

PRUDENTIAL REGULATIONS GENERAL FOR SMALL & MEDIUM ENTERPRISE

FINANCING:-

REGULATION SME R-1:-SME specific credit policy.

For small enterprise loan size is up to Rs. million then it will !e at the discretion

of the !ank to o!tain insurance cover.

REGULATION SME R-2:-"orrowers !asic fact sheet and e#$%" report.

"anks are required to o!tain !orrower&s !asic fact sheet '""FS( from their

!orrowers !ut if their loan application form ')P*( contains all information then noseparate ""FS form required.

"ank shall o!tain e#$%" report on the prospective !orrower while considering

proposals for any e+posure.

Regulatio SME R-!:-Personal ,uarantee.Regulatio SME R-":-)imit on $lean Facility

Regulatio SME R-#:-Proper -tilization of )oan

Regulatio SME R-$:-Restriction on Facilities to Related Parties

Regulatio SME R-%:-ranslation of )oan /ocuments into -rdu )anguage

Regulatio SME R-:-Securities and Margin Requirements

Regulatio SME R-':-,eneral Measures

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P(u)etial Regulatio* +o( S,all Ete((i*e Fia.ig:-

Regulatio SE R-1:-/efinition of Small Enterprise

Regulatio SE R-2:-Per Party E+posure )imit

Regulatio SE R-!:-Requirement of *udited *ccounts

Regulatio SE R-":-Repayment $apacity of the "orrower and $ash Flow "ased

)ending

Regulatio SE R-#:-$ollateral 0aluation

Regulatio SE R-$:-Recovery of 1utstanding /uesRegulatio SE R-%:-,eneral Reserve against Small Enterprise Finance

Regulatio SE R-:-$lassification and Provisioning for )oans2*dvances

Regulatio SE R-':-Restructuring2Rescheduling of )oans

Regulatio SE R-1/:-Minimizing urn#*round#ime

P(u)etial Regulatio* +o( Me)iu, Ete((i*e Fia.ig:-

Regulatio ME R-1:-/efinition of Medium Enterprise

Regulatio ME R-2:-Repayment $apacity and $ash Flow "ased )ending

Regulatio ME R-!:-Per Party E+posure )imit

Regulatio ME R-":-Requirement of *udited *ccounts

Regulatio ME R-#:-$lassification and Provisioning For *ssets



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PRUDENTIAL REGULATIONS FOR CONSUMER FINANCING

Regulatio R-1:- Facilities to related persons 3 utilization of clean loans for %nitial

Pu!lic 1fferings '%P1s(

Regulatio R-2:-)imit on e+posure against total consumer financing.

Regulatio R-!:-otal financing facilities to !e commensurate with the income.

Regulatio R-":-,eneral reserve against consumer finance.

Regulatio R-#:-"ar on transfer of facilities from one category to another to avoid

classification.

Regulatio R-$:-Margin requirements.

Regulatio* Fo( C(e)it Ca()*:-

Regulatio O-1:-Receipt of credit cards.

Regulatio O-2:-Statement of accounts.

Regulatio O-!:--nauthorized2wrong transactions.

Regulatio O-":-Partial payment !y cardholder.

Regulatio O-#:-/ue date for payment.

Regulatio R-%:-Ma+imum card limit.

Regulatio R-:-$lassification and provisioning.

REGULATIONS FOR AUTO LOANS:-

Regulatio R-':-Prohi!ition on financing commercial vehicles.

Regulatio R-1/:-Ma+imum tenure of loan.

Regulatio R-11:-Minimum down payment.

Regulatio R-12:-4ypothecation of vehicles.

Regulatio R-1!:-%nsurance.

Regulatio O-$:-Repossession of vehicles.

Regulatio O-%:- Repayment schedule.

Regulatio O-:-Financing the purchase of used cars.



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Regulatio O-':-*uthorized auto dealers.

Regulatio R-1":-$lassification and provisioning.

REGULATIONS FOR 0OUSING FINANCE:-Regulatio R-1#:-Ma+imum per party limit.

Regulatio R-1$:-/e!t#equity ratio.

Regulatio R-1%:-Ma+imum tenure of loan.

Regulatio R-1:-Mortgage.

Regulatio R-1':-Evaluation of property.

Regulatio R-2/:-Monitoring of market conditions.

Regulatio R-21:-Floating rate products.Regulatio R-22:-$lassification and provisioning.

Regulatio* Fo( Pe(*oal Loa* I.lu)ig Loa* Fo( Te Pu(.a*e O+

Co*u,e( Du(ale*:-

Regulatio R-2!:-Per party limit.

Regulatio R-2":-4ypothecation.

Regulatio R-2#:-Ma+imum tenure of loan.

Regulatio R-2$:-Running2revolving finance.

Regulatio R-2%:-$lassification and provisioning.


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