RBI issues revised instructions for treatment of Bad and Doubtful Debt Reserve by Co-operative Banks
Editorial Note : RBI has issued revised instructions for treating Bad and Doubtful Debt Reserve (BDDR) by Cooperative Banks. As per the instructions, all provisions as per Income Recognition, Asset Classification and Provisioning (IRACP) norms, regardless of whether they are accounted for under the head “BDDR” or another head, must be charged as an expense to the P&L account in the accounting period in which they are recognised. The circular applies to all primary UCBs, SCBs and Central Co-operative Banks.