RPCD.No.PLNFS.BC.128/06.02.31/96-97

22 April, 1997

All Scheduled Commercial Banks

Dear Sir,

Flow of Credit to SSI Sector

     Please refer to paragraph 17(h) (a) of Governor’s letter No.CPC.BC.162/07.01179/96-97 dated 15 April, 1997 announcing Monetary and Credit policy for the first half of the year 1997-98.

2. At present village industries, tiny industries and other SSI units having aggregate fund based working capital limits upto Rs. 1 crore from the banking system are to be provided working capital finance computed on the basis of 20% of their projected annual turnover (c.f. item (iii) of enclosure to our circular IECD.No.19/08.13.09/93-94 dated 28 October 1993). It has now been decided that henceforth for the credit requirements of village industries, tiny industries and other SSI units (new as well as existing) having aggregate fund based working capital limit upto Rs. 2 crore from the banking system may be provided working capital limits computed on the basis of a minimum of 20 per cent of their projected annual turnover.

3. The other instructions contained in paragraph 3 of our circular No. PLNFS. BC. 99/06.02.31/92-93 dated 17 April 1993 remain unchanged.

Yours faithfully,

 Sd/-
(R. RAMANUJAM)
Chief General Manager

RPCD.No.PLNFS.BC.148/06.04.01/96-97

5 June, 1997
15 Jyestha 1919 (Saka)

All Scheduled Commercial Banks

Dear Sir,

Rehabilitation of Sick Small Scale Industrial Units

     Please refer to our circular letter RPCD.No.PLNFS.BC.69/SIU.20-90/91 dated 8 January, 1991on the above subject in terms of which the requirement of prior approval by the Reserve Bank of India for extending reliefs/concessions beyond the prescribed parameters was withdrawn. However, banks were advised to furnish to us the information about the individual packages involving reliefs/concessions beyond the prescribed parameters, on half-yearly basis. As adequate time has since elapsed, the banks would have acquired considerable experience in the matter. It has, therefore, been decided to withdraw, with immediate effect, the requirement of submission of the aforesaid half-yearly returns to the Reserve Bank of India. However, as indicated in our aforesaid half-yearly returns to the Reserve Bank of India. However, as indicated in our aforesaid circular, only in exceptional cases, concessions/reliefs beyond the parameters indicted in our guidelines, should be considered.

2. All other instructions of the circular under reference remain unchanged.

3. Please acknowledge receipt.

Yours faithfully,

 Sd/-
(R. M. JOSHI)
General Manager

RPCD.No.PLNFS.186/06.02.28-97/98

2 August,1997

The Chairman & Managing Director,
All Scheduled Commercial Banks

Dear Sir,

Financing of SSIs

     As you may be aware, a special meeting of High powered "Standing Advisory Committee to review the flow of credit to SSI sector" was held on 7.6.97 at Coimbatore. The meeting was presided over by the Governor and attended by the representatives of Ministry of Industry. Govt. of India, bankers, economists, financial institutions and SSI associations. The status relating to the flow of credit to SSI sector was reviewed at the meeting and the Committee was appreciative of the increased flow of credit to the sector. However, during the deliberations the members voiced difficulties in securing adequate finance from banks and delays in sanction/enhancement of limits despite guidelines issued by Reserve Bank in this regard. We furnish below the important conclusions emerged out of the deliberations for your information and necessary action.

1. The simplified procedure of sanctioning working capital limits upto Rs. 2 crores on the basis of 20% of the projected annual turnover in the case of small scale units need to be followed by banks in right earnest.

2. The prescribed time schedule for disposal of loan application (2 weeks for loans upto Rs. 25,000/- and 8 to 9 weeks for loans above Rs. 25,000/-) should be adhered.

3. Banks should look into the modalities for taking credit decisions quickly and put in place a monitoring mechanism to ensure the same. It is equally necessary that decisions taken are communicated to the SSI units promptly.

4. The specialised SSI branches set up by banks need to be equipped with appropriate personnel having adequate discretionary powers to sanction credit. Attention need to be bestowed on aspects such as attitudinal change in the mindset of staff, training etc. with a view to bring about perceptible improvement in the functioning of the specialised branches.

5. Grievances redressal machinery at the controlling offices should be reactivated. It should play the expected role effectively which will go a long way in improving customer relations and customer satisfaction.

2. We shall be glad if you will please make a comprehensive review of the position obtaining in your bank and take necessary measures urgently in regard to the aspects mentioned above.

3. Please acknowledge receipt.

Yours faithfully,

 Sd/-
(R. RAMANUJAM)
Chief General Manager

RPCD.No.PLNFS.BC.13/06.06.12(D)/97-98

28 July,1997

The Chairman,
All Scheduled Commercial Banks

Dear Sir,

Rural Employment Generation Programme of KVIC

     A High Powered Committee on Khadi and Village Industries headed by the then Prime Minister recommended in May, 1994, among other things, accelerated growth of rural employment generation programmes. Accordingly, KVIC has since formulated a Scheme for financing projects with investment limits upto Rs. 25 lakhs for rural industrialisation and employment generation. Under the scheme, 25 per cent of the project cost is being provided as "Margin Money" by way of subsidy. The scheme was discussed in the Conference of Industry Ministers of States in August 1996. It was decided to implement the scheme throughout the country.

2. Details relating to the "Margin Money" Scheme are being furnished to you by KVIC, the salient features thereof are given below:

   dnfdjfndasj

   1. Eligible projects

      The scheme is applicable to all viable village industry projects set up in rural areas.

   2. Eligible borrowers

      The eligible agencies under the scheme are individuals (rural artisans/entrepreneurs) for projects upto Rs. 10 lakhs and institutions, Co-operative Societies, Trusts registered with KVIC/KVIB for projects upto Rs. 25 lakhs.

   3. Margin Money 

      25 per cent of the project cost upto Rs. 10.00 lakhs will be provided by KVIC as Margin money by way of subsidy. For projects above Rs. 10.00 lakhs and upto Rs. 25.00 lakhs rate of margin money will be 25 per cent of Rs. 10.00 lakhs plus 10 per cent of the remaining cost of the project.

      In the case of weaker section beneficiary viz. SC/ST/OBC/ Women/Physically Handicapped/Ex-servicemen and Minority Community beneficiary/Institutions and for Hill, Border and Tribal Areas, North Eastern Region, Sikkim, Andaman & Nicobar Islands, Lakshadweep, Margin Money grant will be at the rate of 30 per cent of the project cost upto Rs. 10.00 lakhs.

   4. Borrower’s Contribution

      Under the Scheme, the borrower is required to provide his own contribution of at least 10 per cent of the project cost. In case of SC/ST and other weaker section borrowers, the contribution will be 5 per cent of the project cost.

   5. Quantum of loan

      Banks will sanction 90 per cent of the project cost in case of general category of borrowers and 95 per cent of the project cost in case of Weaker Section beneficiary/institutions and disburse full amount of the loan.

   6. Adjustment of Margin Money

      KVIC will place a lump-sum deposit of Margin Money in advance with the Corporate office of each bank, which will be available for adjustment by banks to the borrowers’ loan account after a period of two years from the date of disbursement of loan. Banks should furnish quarterly progress report of adjustment of margin money directly to KVIC.

3. Kindly issue suitable instructions to the controlling offices/branches immediately for implementation of the scheme.

Yours faithfully,

 Sd/-
(R. M. JOSHI)
General Manager

RPCD.No.277/06.02.31/97-98

28 August, 1997

To All Public Sector Banks

Dear Sir,

Credit Flow to SSI Sector

     We advise that a study made by Govt. of India, Department of SSI & Agro & Rural Industries, Ministry of Industry has revealed that the credit flow to SSI sector has not been commensurate with the increased output of that sector. While banks have increased the flow the credit to SSI sector during the recent period, the gap between the requirements of working capital and the limits granted is increasing. In order to improve the position, you are advised to ensure adherance to the simplified procedure of providing working capital limits on the basis of a minimum of 20 per cent of the projected annual turnover for new as well as existing units, having working capital limits upto Rs. 2 crores from the banking system. We may add that there should not be any arbitrary denials of/reductions in limits sanctioned.

2. We also advise you to operationalise more specialised branches at centres where there is potential for financing many SSI borrowers. Banks are also advised to equip such branches with adequate skilled and experienced personnel so that the problems of SSI units are considered sympathetically. Please let us know as soon as possible, say before 30 September 1997, your programme for operationalising more specialised branches during the year and the names of such centres.

Yours faithfully,

 Sd/-
(R. M. JOSHI)
General Manager

RPCD.No.PLNFS.BC.64/06.04.01/97-98

30 December, 1997

All Scheduled Commercial Banks

Dear Sir,

Rehabilitation of Sick Small Scale Industrial Units

     Please refer to our Circular RPCD.No.PLNFS.BC.90/06.04.01/95-96 dated 13 February 1998 regarding parameters for the grant of reliefs/concessions by banks as per the packages involved for rehabilitation of potentially viable sick small scale industrial units.

2. It has been observed from the data relating to SSI sick units as at the end of March 1996 that out of 2,62,376 sick SSI units with outstanding bank credit of Rs. 3721.94 crores, 2,40,168 units with outstanding amount of Rs. 2943.65 crores were classified as non-viable.

   In the SSI sector, particularly among the tiny and decentralised sector as well as those assisted under schemes like SEEUY, a number of units financed by banks, are no longer in existence or are not traceable and/or have no assets left, etc. We wonder whether such units have also been included in the above data reported by banks. We shall be glad if you will please ensure to treat such limits as a category distinct from sick SSI units and report separately, as per extant instructions.

3. As you are aware, Reserve Bank has been placing emphasis on a systematic approach to the detection of symptoms leading to sickness and ensure that sickness is arrested at the incipient stage itself. The branch officials and other functionaries at field level should be alert in monitoring day-to-day operations in the borrowal accounts so as to facilitate identification of the early warning signals and initiate corrective steps promptly. Such steps may include providing timely financial assistance depending on established needs, sorting out difficulties which are non-financial in nature and require assistance from outside agencies, etc. Banks should take a sympathetic attitude and strive for rehabilitation, in respect of units in the SSI sector, particularly wherever the sickness is on account of circumstances beyond the control of entrepreneurs. Since SSI financing is part of priority sector lending, every possible effort should be made to see that SSI sector thrives on healthy lines. The emphasis of the rehabilitation effort in the case of SSI units, will, therefore have to be on adequate and timely intensive relief measures and their speedy application rather than giving a long span of time to the units for rehabilitation. In cases of units which are not capable of revival, banks should try for a settlement and/or to resort to the other recovery measures, very expeditiously.

4. You may issue suitable instructions to the concerned officials of controlling offices and branches so as to ensure that prompt and adequate measures are taken in rehabilitating all viable sick SSI units so that number of non-viable sick SSI units become minimal.

   You are also requested to review the existing position of sick SSI units in your bank and take urgent remedial steps to complete the viability studies of the units expeditiously.

5. Please acknowledge receipt and advise us the action taken by your bank in implementing the above.

Yours faithfully,

 Sd/-
(R. M. JOSHI)
General Manager

RPCD.No.PLNFS.BC.66/06.02.31/97-98

5 January, 1998

The Chairman/Managing Director/
Chief Executive Officer
All Scheduled Commercial Banks
(excluding RRBs)

Dear sir,

Priority sector advances -
Credit deployment to SSI sector

     Please refer to para 17(h)(ii)(b) of our Credit Planning Cell circular Ref. No. CPC. BC. 162/ 07.01.279/ 96-97 dated April 15, 1997 regarding Monetary and Credit policy measures for the first half of the year 1997-98.

2. We advise that Govt. of India have since issued a notification revising the definition of Small Scale Industries (SSI) with effect from 11 December 1997. Copy of Gazette notification No.S.O.857(E) dated December 10,1997 is enclosed. As may be seen therefrom, the ceiling on investment in plant and machinery of SSI/ancillary units has been raised to Rs. 3 crore from the existing limits of Rs. 60 lakhs and Rs. 75 lakhs for SSI and ancillary units respectively. You may accordingly reckon the bank advances to SSI units for the purpose of classification under the priority sector.

3. In order to ensure that credit is available to all segments of the SSI sector, it has been decided that out of the funds available to SSI sector under priority sector advances, banks should ensure that 40% will be made available for units with investment in plant and machinery upto Rs. 5 lakhs, 20% for units with investment between Rs. 5 lakhs and Rs. 25 lakhs and the remaining 40% for other SSI units.

4. Please acknowledge receipt.

Yours faithfully,

 Sd/-
(R. M. JOSHI)
General Manager

Encl.: As above

(TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (ii)
OF THE EXTRAORDINARY GAZETTE OF INDIA)

GOVERNMENT OF INDIA
MINISTRY OF INDUSTRY
(Department of Industrial Policy and Promotion)
New Delhi

10^th December, 1997

ORDER

     S.O.857(E) Whereas the Central Government considers it necessary with a view to ascertain which ancillary and small scale industrial undertakings need supportive measures, exemption or other favourable treatment under the Industries (Development and Regulation) Act, 1951 (65 of 1951) (herein after referred to as the said Act) to enable them to maintain their viability and strength so as to be effective in-

1. promoting in a harmonious manner the industrial economy of the country and easing the problem of unemployment, and

2. securing that the ownership and control of the material resources of the community are so distributed as best to subserve the common good.

And whereas the draft notification was laid before each House of Parliament for a period of thirty days as required under sub-section (3) of section 11B of the said Act;

And whereas no modification in the proposed notification has been suggested by both the Houses of Parliament.

Now, therefore, in exercise of the powers conferred by sub-section (1) of section 11B and subsection (1) of section 29B of the said Act, and in supersession of the notification of the Government of India in the Ministry of Industry (Department of Industrial Development) number S.O.232(E), dated the 2^nd April, 1991, the Central Government hereby specifies the following factors on the basis of which an industrial undertaking shall be regarded as a small scale or as an ancillary industrial undertaking for the purposes of the said Act :-

1. Small scale industrial undertaking : An industrial undertaking in which the investment in fixed assets in plant and machinery, whether held on ownership terms or on lease or on hire purchase, does not exceed rupees three crores;

2. Ancillary industrial undertaking : An industrial undertaking which is engaged or is proposed to be engaged in the manufacturing or production of parts, components, sub-assemblies, tooling or intermediaries, or the rendering of services, and undertaking supplies or proposes to supply or renders not more than fifty per cent of its production or services, as the case may be, to one or more other industrial undertakings and whose investment in fixed assets in plant and machinery, whether held on ownership terms or on lease or on hire purchase, does not exceed rupees three crores.

Note 1: No small scale or ancillary industrial undertaking referred to above shall be subsidiary of, or owned or controlled by any other industrial undertaking.

Explanation - For the purposes of this note -

1. "owned" shall have the meaning as derived from the definition of the expression "owner" specified in clause (f) of section 3 of the said Act;

2. "subsidiary" shall have the same meaning as in clause (47) of section 2, read with section 4, of the Companies Act, 1956 (1 of 1956);

3. the expression "controlled by any other industrial undertaking" means as under :-

   1. where two or more industrial undertakings are set up by the same person as a proprietor, each of such industrial undertakings shall be considered to be controlled by the other industrial undertaking or undertakings.

   2. where two or more industrial undertakings are set up as partnership firms under the Indian Partnership Act, 1932 (1 of 1932) and one or more partners are common partner or partners in such firms, each such undertaking shall be considered to be controlled by the other undertaking or undertakings.

   3. where industrial undertakings are set up by companies under the Companies Act, 1956 (1 of 1956), an industrial undertaking shall be considered to be controlled by other industrial undertaking if :-

      1. the equity holding by other industrial undertaking in it exceeds twenty four per cent of its total equity; or

      2. the management control of an undertaking is passed on to the other industrial undertaking by way of the Managing Director of the first mentioned undertaking being also the Managing Director or Director in the other industrial undertaking or the majority of Directors on the Board of the first mentioned undertaking being the equity holders in the other industrial undertaking in terms of the provisions of the following items (a) and (b) of sub-clause (iv);

   4. the extent of equity participation by other industrial undertaking or undertakings in the undertakings as per sub-clause (iii) above shall be worked out as follows :-

      1. the equity participation by other industrial undertaking shall include both foreign and domestic equity;

      2. equity participation by other industrial undertaking shall mean total equity held in an industrial undertaking by other industrial undertaking or undertakings, whether small scale or otherwise, put together as well as the equity held by persons who are Directors in any other industrial undertaking or undertakings even if the person concerned is a Director in other Industrial Undertaking or Undertakings;

      3. equity held by a person, having special technical of qualification and experience, appointed as a Director in a small scale industrial undertaking to the extent of qualification shares, if so provided in the Articles of Association shall not be counted in computing the equity held by other industrial undertaking or undertakings even if the person concerned is a Director in other industrial undertaking or undertakings;

   5. where an industrial undertaking is a subsidiary of or is owned or controlled by, any other industrial undertaking or undertakings in terms of sub-clauses (i); (ii); or (iii) and if the total investment in fixed assets in plant and machinery of the first mentioned industrial undertaking and the other industrial undertaking or undertakings clubbed together exceeds the limit of investment specified in paragraphs (1) or (2) of this notification as the case may be, none of these industrial undertakings shall be considered to be a small scale or ancillary industrial undertaking.

Note 2 :

1. In calculating the value of plant and machinery for the purposes of paragraphs (1) and (2) of this notification, the original price thereof, irrespective of whether the plant and machinery are new or second hand, shall be taken into account

2. In calculating the value of plant and machinery, the following shall be excluded, namely :-

   1. the cost of equipments such as tools, jigs, dies, moulds and spare parts for maintenance and the cost of consumable stores;

   2. the cost of installation of plant and machinery;

   3. the cost of research and development equipment and pollution control equipment;

   4. the cost of generation sets and extra transformer installed by the undertaking as per the regulations of the State Electricity Board;

   5. the bank charges and service charges paid to the National Small Industries Corporation or the State Small Industries Corporation;

   6. the cost involved in procurement or installation of cables, wiring, bus bars, electrical control panel (not those mounted on individual machines), oil circuit breakers or miniature circuit breakers which are necessarily to be used for providing electrical power to the plant and machinery or for safety measures;

   7. the cost of gas producer plants;

   8. transportation charges (excluding of sales-tax and excise) for indigenous machinery from the place of manufacturing to the site of the factory;

   9. charges paid for technical know-how for erection of plant and machinery;

   10. cost of such storage tanks which store raw materials, finished products only and are not linked with the manufacturing process; and

   11. cost of fire fighting equipments.

3. In the case of imported machinery, the following shall be included in calculating the value, namely :-

   1. import duty (excluding miscellaneous expenses as transportation from the port to the site of the factory, demurrage paid at the port);

   2. the shipping charges;

   3. customs clearance charges; and

   4. sales tax

     Every industrial undertaking which has been issued a certificate of registration under section 10 of the said Act or a license under sections 11, 11A and 13 of the said Act by the Central Government and are covered by the provisions of paragraphs (1) and (2) above relating to the ancillary or small scale industrial undertaking, may be registered, at the discretion of the owner, as such, within a period of one hundred and eighty days from the date of publication of this notification in the Official Gazette.

     This notification shall come into force from the date of its publication in the Official Gazette.

Yours faithfully,

 Sd/-
(ASHOK KUMAR)
Jt. Secretary to the Govt. of India

(File No.10/6/97-IP)

RPCD.No.BC.PLNFS.89/06.02.31/97-98

19 February, 1998

The Chairman/MD/CEO
All Scheduled Commercial Banks
(Excluding RRBs)

Dear Sir,

Priority sector advances -
Credit deployment to SSI sector

     Please refer to our circular RPCD.No.BC.PLNFS.66/06.02.31/97-98 dated 5 January 1998. We advise that Government of India have issued an order revising the limit on investment in plant and machinery in respect of ‘tiny enterprises’ from Rs. 5 lakhs to Rs. 25 lakhs. A copy of the Government Order No. 12/4/95-SSI(P) dated 24 December 1997 is enclosed.

2. It has been decided that out of the funds available to SSI sector allocation should be made as under :

   Category		Investment in Plant & Machinery	% to total SSI advances
   I.	Cottage industries khadi & village industries artisans and tiny industries	upto Rs. 5 lakhs	40
   II	- do -	Between Rs. 5 lakhs & Rs. 25 lakhs	20
   III.	Other SSI units	Between Rs.25 lakhs & Rs. 300 lakhs	40

3. Please acknowledge receipt.

Yours faithfully,

 Sd/-
(R.M.JOSHI)
General Manager

Encl.: 1

No.12/4/95-SSI(P)
Government of India
Ministry of Industry
Department of Small Scale Industries and
Agro and Rural Industries
Udyog Bhawan, New Delhi-11

24^th December, 1997

To

The Secretary/Commissioner Industries
Director of Industries
All States and Union Territories

Sir,

Tiny Enterprises - Investment Limit regarding

     The Central Government in exercise of the powers conferred by Sub-section (i) of Section 11(B) and Sub-section (i) of Section 19(B) of the industries (Development & Regulation) Act, 1951 has notified vide its notification No.857(E) dated 10.12.97 that an industrial undertaking having investment in fixed assets in plant and machinery upto Rs. 300 lakhs, will be accorded the status of a small scale industrial undertaking. Such investment limit in respect of "TINY ENTERPRISES" now stands increased from the present level of Rs. 5 lakhs to Rs. 25 lakhs, irrespective of the location of the unit.

     All existing guidelines with regard to registration etc. for tiny units with the enhanced limit of Rs. 25 lakhs will remain unchanged.

Yours faithfully,

 Sd/-
(S. NAYAK)
Director

RPCD.PLNFS.No.792/06.02.31/97-98

March 2,1997

All Public Sector Banks

Dear Sir,

Flow of Credit to SSI Sector -
Opening of Specialised SSI Branches

     Please refer to para 4 of our circular RPCD.No.PLNFS.BC.1/ 06.02.31/93-94 dated 3 July 199 regarding opening of specialised SSI branches and the various instructions issued by us on the subject from time to time.

2. It has been observed that although the banks have operationalised as many as 353 specialise SSI branches by the end of March 1997, there are still 80 districts/centres in which there are more than 1000 registered SSI units, where no specialised SSI branch has been operationalised so far. We, therefore, advise that while identifying centres for opening more specialised SSI branches, centre in such 80 districts (list enclosed for ready recerence) may be selected as this will go a long way in provided focused attention and service to the SSI sector.

3. In the meanwhile, please acknowledge receipt.

Yours faithfully,

 Sd/-
(R. M. JOSHI)
General Manager

Encl :1 List

(With more than 1000 and up to 1999 small scale functioning units)

RPCD.PLNFS.BC.98/06.06.12(D)/97-98

March 14, 1998

The Chairman
All Scheduled Commercial Banks

Dear Sir,

Rural Employment Generation
Programme of KVIC

     Please refer to our circular RPCD.PLNFS.No.BC.13/06.06.12(D)/97-98 on the captioned subject.

2. We advise that the pargraph 2(ii) relating to eligible borrowers mentioned in our circular referred to above may be amended to read as under:

    " The eligible agencies under the schemes are individuals (rural artisans/entrepreneurs) for projects upto Rs. 10 lakhs and Institutions, Co-operative Societies, Trusts for projects upto Rs. 25 lakhs."

   Consequently, registration for Institutions, Co-operative Societies, Trusts with KVIC/KVIB is not a precondition for eligibility under the scheme.

3. Please issue suitable instructions to the controlling offices/branches of your bank.

4. Please acknowledge receipt.

Yours faithfully,

 Sd/-
(R. M. JOSHI)
General Manager

RPCD.No.PLNFS.BC.127/06.02.31/97-98

 June 8, 1998

All Scheduled Commercial Banks

Dear Sir,

Flow of Credit to SSI Sector

     Pursuant to announcement made by the Finance Minister in his budget speech on 1^st June 1998, the following measures are being taken in regard to easing the flow the bank credit to SSI units.

2. At present, SSI units having aggregate fund based working capital limits up to Rs. 2 crore from the banking system are to be provided working capital finance computed on the basis of 20% of their projected annual turnover vide our Circular RPCD.No.PLNFS.BC.128/06.02.31/96-97 dated 22^nd April 1997. It has now been decided that this facility may be doubled to Rs. 4 crores. Banks should, therefore, adopt henceforth the simplified procedure of sanctioning working capital limits on the basis of 20% of the projected annual turnover to all SSI units (new as well as existing) requiring aggregate fund based working capital limits upto Rs. 4 crores from the banking system. Other instructions contained in paragraph 3 of our circular RPCD.No.PLNFS.BC.99/06.02.31/92-93 dated 17 April 1993 remain unchanged.

3. Further, in order to take expeditious decisions on credit proposals of SSI units, it has been decided that banks should delegate enhanced powers to the branch managers of the specialised SSI branches so that most of the credit proposals are decided at the branch level.

4. With a view to moderating the cost of credit to SSI units, banks are advised to accord SSI units with a good track record the benefit of lower spreads over the Prime Lending Rate.

5. We shall be glad if you will issue necessary instructions to all your controlling offices/branches in the matter.

6. In the meanwhile, please acknowledge receipt.

Yours faithfully,

 Sd/-
(R. M. JOSHI)
General Manager