End Use of Funds – Monitoring
today, released a small notification on Monitoring End Use of Funds.
The Circular No is RBI/2010-11/368 DBS.CO.PPD.BC.No. 5/11.01.005/2010-11 dt.January 14, 2011
The Circular can be accessed @
Brief Highlights of the Circular:
01) Robust procedures for Post – Sanction Supervision.
02) Not to rely exclusively on Chartered Accountants Certification.
03) Due Diligence % to be increased.
04) Effective monitoring of End Use of Funds, acts as a deterrent for borrowers to misuse the credit facilities sanctioned.
05) This in turn aids in building up a healthy credit culture.