The Reserve Bank of India has directed large cooperative banks to report all exposures of Rs 5 crore and more to the Central Repository of Information on Large Credits (CRILC). The move is aimed at early detection of financial distress. The aggregate exposure will include all fund-based and non-fund based exposures like partial credit enhancement, including investment exposure on the borrower. As per the new rules, Urban Cooperatives Banks are required to submit CRILC report on quarterly basis with effect from December 31, 2019.
The CRILC was created by the Reserve Bank of India. CRILC constitutes commercial banks, all India financial institutions and certain non-banking financial companies with multiple objectives, which, among others, include strengthening offsite supervision and early recognition of financial distress.
Important takeaways for all competitive exams:
- RBI 25th Governor: Shaktikant Das; Headquarters: Mumbai; Founded: 1 April 1935, Kolkata.
Source: The Economic Times