23\/4\/2016<\/p>\n
***** Lesson no 29 *****<\/p>\n
One fine morning recently joined Officer Mr. Dhiresh Kumar a bit perplexed asked his very Senior Colleague Shri Nagpal, Sir “I come across a term ‘CHORE COMMITTEE’ several times what it connotes?
Shri Nagpal took a long breath and came out with a beautiful exposition. An intelligent question he said with himself and gave full details as follows.<\/p>\n
—— Chore Committee ——-<\/p>\n
The committee was formulated in March 1979, now exactly 47 years ago by RBI to review the Operations of Cash Credit System and to suggest modifications\/alternative types of credit limits.Then the suggestions were
1. Review of all borrowal accounts at least once a year with Working Capital limits of Rs Ten lacs and over.
(My young friends then GOLD was Rs.400\/450 a Tola ;10 GMs)
2 To switch over to 2nd Method of Lending as recommended by Tandon Committee for WC limits of Rs 10 lacs and above.
3 Separate limits for Peak and Non -peak Periods \/Levels of operations for Seasonal Industries. Eg Sugar,Food processing etc.
4 Submission of QIS data (Quartrly information system.) by all borrowers with WC limits of Rs50 lacs and above from banking system.
5 Drawl of Funds to be regulated through QIS statements with tolerance of 10% on either way on indicated requirement of the borrower.
6. Along-with QIS I and II borrowers should submit
— Monthly Select Operational Data (ie. MSOD).
— Half Yearly proforma Balance Sheet and Profit and Loss account
— Half yearly Operating and Funds Flow Statements QIS III.
(Initially QIS III was to be submitted to RBI but it was discontinued and was to be a tool of control for Bankers).
7 To give a boost to Bills Financing committee suggested that 50% of Cash Credit limits against Raw Material be by way of Drawee Bills Limit.
## Initially QIS submission was made applicable to borrowers with WC limits of Rs.50 lacs and above from banking system.
## Since 1994 it was made applicable to borrowers with WC limits of Rs.1 Crores and above.<\/p>\n
@ Present Guidelines. @<\/p>\n
In the light of Operational Freedom granted by RBI from August 1998 the Individual Bank’s have to make the stipulations. The common cut off for many Banks are
a) Borrowers enjoying WC limits of Rs.2 Crores and above from banking system to submit QIS
b)In respect of Consortium Finance to follow the System as decided by Consortium (or the Lead Bank System in absence).
Shri Nagpal was looking at Shri Dhiresh Kumar with expectations, and DK a honest intelligent guy appeared very satisfied.
DK furthered Sir, ‘I understood the basics but I am sure you have to tell some additional points.
Shri Nagpal came out with remorse, DK the Sys is still wonderful even under present circumstances for Monitoring Large Borrowal accounts.
But very sadly I have to agree that One – it is not understood properly even by 300 staff members out of strength of 35000 in an average PSU bank.Secondly the branches collect them as a formality. Thus a control mechanism looses its usefulness and benefits are skittled away.He furthered, on the other hand ‘My experience tells that most of the borrowers who have to submit these Statement understood it thoroughly but do not show and submit as they will be questioned.
DK very eagerly requested Shri Nagpal to throw more light on this important subject. Shri Nagpal with a smile said tomorrow.<\/p>\n
By by my friends.<\/p>\n
Waman Gokhale
waman.gokhale@gmail.com
7350901500<\/p>\n","protected":false},"excerpt":{"rendered":"
23\/4\/2016 ***** Lesson no 29 ***** One fine morning recently joined Officer Mr. Dhiresh Kumar a bit perplexed asked his very Senior Colleague Shri Nagpal, Sir “I come across a term ‘CHORE COMMITTEE’ several times what it connotes?Shri Nagpal took a long breath and came out with a beautiful exposition. An intelligent question he said…<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":1165,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-1353","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/pages\/1353","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1353"}],"version-history":[{"count":1,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/pages\/1353\/revisions"}],"predecessor-version":[{"id":1354,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/pages\/1353\/revisions\/1354"}],"up":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/pages\/1165"}],"wp:attachment":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}