ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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CENTRE-STATE RELATIONS-Sarkaria Commission s Questionnaire

rent ratio of 1.33 : 1 (unless exempted); (jv) prompt submission of quarterly operating statements as also annual accounts by borrowers; and (v) regular annual review of the credit facilities by banks. All proposals seeking the benefit of the 'fast track' would be subjected to the normal process of scrutiny in the Reserve Bank as at present and, if it is found that the credit limits sanctioned by the commercial bank were not need-based or were excessive, corrective action would have to be taken by it as directed by the Reserve Bank, This could involve even recall of the amount released partially or wholly. In such cases, the Reserve Bank may stipulate that, until further notice, credit proposals from these borrowers should be referred to it for prior authorisation. Proposals which do not strictly conform to the suggested criteria will, however, continue to undergo pre-disbursement scrutiny by the Reserve Bank as at present.

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