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[Cites 0, Cited by 0] [Section 20] [Entire Act]

Union of India - Subsection

Section 20(3) in Nidhi Rules, 2014

(3)
(a)In respect of mortgage loans, the classification of assets and the provisioning required shall be as under:
Nature of Asset Provision Required
Standard Asset No provision
Sub-standard Asset 10% of the aggregate outstanding amount
Doubtful Asset 25% of the aggregate outstanding amount
Loss Asset 100% of the aggregate outstanding amount
Provided that a Nidhi may make provision for exceeding the percentage specific herein.
(b)The estimated realisable value of the collateral security to which a Nidhi has valid recourse may be reduced from the aggregate outstanding amount, if the proceedings for the sale of the mortgaged property have been initiated in a court of law within the previous two years of the interest, income or instalment remaining unrealised.