End Use of Funds – Monitoring


 

End Use of Funds – Monitoring

Reserve Bank of India, DBS

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 @

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6215&Mode=0

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.

 

 

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