![]() ![]() In respect of borrowers subject to compromise settlements, the notification said, there would be a cooling period as determined by the respective board-approved policies before the REs can assume fresh exposures to such borrowers.The above conditions are subject “ to such claims not being recognised in any manner on the balance sheet of REs at the time of the settlement or subsequently till actual realisation of such receivables.”.The compromise settlements and technical write-offs would be with out prejudice to any mutually agreed contractual provisions between the RE and the borrower relating to future contingent realisations or recovery by the RE.The objective would be to maximise the possible recovery from a distressed borrower at minimum expense, in the best interest of the Regulated Entity (RE).The methodology for arriving at the realisable value of the security shall also form part of the policy.Conditions would include minimum ageing, deterioration in collateral value.The policies would also put in place a graded framework for the ‘ examination of staff accountability’ in such cases with reasonable thresholds and timelines as may be decided by the board.This is without involving any waiver of claims against the borrower. Technical write-offs would refer to cases where the non-performing assets remain outstanding at the borrowers' loan account level but are written off (fully or partially) by the RE only for accounting purposes. All regulated entities (REs) are required to put in place board-approved policies for undertaking compromise settlements, with the borrowers as well as for technical write-offs laying down the process to be followed for all compromise settlements with specific guidance on the necessary conditions precedent.Good Practice - Examples & Case Studies.Workbook - Prelims/Mains Practice Questions.Mains Previous Year Question with Solutions New.GS Mains Test Series 2024 (Sectional+Mock).2 Year Integrated (Pre-Cum-Mains) Test Series 2025.1 Year Integrated (Pre-Cum-Mains) Test Series 2024.GS Analyst: Weekly Current Affairs Classes.Target PT 2024: Prelims Revision Classes New.GS Mains Classes 2024 (Basic to Advance). ![]()
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