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. of the !ank to o!tain insurance cover. REGULATION SME R-2:- "orrowers !asic fact sheet and e#$%" report. "anks are required to o!tain !orrower&s !asic fact sheet '""FS( from their !orrowers !ut if their loan application form ')P*( contains all information then no separate ""FS form required. "ank shall o!tain e#$%" 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 million then it will !e at the discretion

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P(u)e tial Regulatio * +o( S,all E te(-(i*e Fi a .i g: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 /ues Regulatio 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)e tial Regulatio * +o( Me)iu, E te(-(i*e Fi a .i g: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(*o al Loa * I .lu)i g Loa * Fo( T1e Pu(.1a*e O+ Co *u,e( Du(a2le*: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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