09-05-2012, 12:21 PM
Chore Committee
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To make recommendations on any other related matter as the 'Group' may consider germane to the subject.
The 'Group' gave its recommendations in 1979. Important recommendations which are accepted by Reserve Bank and have a direct bearing on credit limits of the borrowers are .
No Structural Change Continuation of Cash Credit, Loan and Bills Facilities
No structural changes in the lending system are considered necessary and working capital credit limits are to be sanctioned as a combination of cash credit, loans and bills facilities as hitherto.
However, a directional change is necessary and the cash credit limit is to be supplemented by loan and bill facility, wherever possible.
Review of Borrowal Accounts
All borrowable accounts enjoying total working capital credit limits of Rs.10 lacs and above from the entire banking system must be reviewed at least once in a year. The review is necessary not only to ensure the continued viability of the borrower but also to assess the need based requirement for credit limits.