RBI directs large co-op banks to report all exposures above Rs.5 crore

News:The Reserve Bank of India(RBI) has directed large cooperative banks to report all aggregate exposures of Rs.5 crores and more to Central Repository of Information on Large Credits(CRILC).

Facts:

About CRILC:

• The Reserve Bank of India has created a CRILC of commercial banks, certain Non-Banking Financial Companies (NBFCs) and All India Financial Institutions(AIFIs).
• CRILC collects, store, and publish data on all borrowers’ credit exposures.The Banks/Financial Institutions are expected to report findings to CRILC. 
• The banks have to provide credit information to CRILC about their borrowers with an aggregate fund-based and non-fund based exposure of and over Rs.5 Crores (Rs.50 million). 
• The banks should also report the Special Mention Accounts(SMA) status of their borrowers to the Central Repository of Information on Large Credits.

Additional information:

About Co-operative Banks:

• A Co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank.
• Co-operative banking in India started in the early 20th century with the passing of Co-operative Societies Act in 1904 and later with the Co-operative Societies Act, 1912.
• They are often created by persons belonging to the same local or professional community of sharing a common interest.
• They are classified into two categories namely Urban Co-operative Banks(UCBs) and rural co-operative banks.

About Special mention accounts(SMA):

• Special Mention Accounts are those accounts that shows symptoms of bad asset quality in the first 90 days itself.
• The Special Mention Account identification is an effort for early stress discovery of bank loans.It was introduced as a corrective action plan to contain stress.