Annexure I

Standard Operating Procedure (SOP) for resolution of loans for consumer

credit, business purpose and Agri Allied activities under Non-SRA Agri. as per
the Resolution Framework 2.0 of the Reserve Bank of India

1. Scope of the scheme

a. Resolution of loans (with an objective of alevating the potential stress on
account of resurgence of COVID-19 pandemic) granted for consumer credit,
business purpose and Agri Allied activities under Non-SRA Agri. as per the
Resolution Framework 2.0 of the Reserve Bank of India with an aggregate
exposure of not more than Rs.25 crore as on March 31, 2021.
b. The exposure was classified as Standard Assets as on March 31, 2021,
provided the accounts have not availed of any resolution in terms of Resolution
Framework – 1.0 (subject to special exemption granted unde clause 22 of the
RBI circular RBI/ 2021-22/31/ DOR.STR.REC.11/21.04.048/2021-22 dated
May 5, 2021) are eligible under Resolution Framework – 2.0.
c. The farm credit (except for allied activities) are excluded from the scope of this
resolution framework.
d. Loans to Primary Agriculture Credit Societies (PACS), Farmer Services
Societies (FSS) a and Large-sized Advivasi Multi-Purpose Societies (LAMPS)
for on-lending to Agriculture are not eligible under the scheme.

2. Eligibility
The loans granted for following purposes are eligible for the proposed
resolution plan:
a. Personal Loans to individuals for consumer credit including those personal
loans secured by Gold Jewelry and loans given for other consumption purposes
(e.g., social ceremonies, etc).
b. Business loans to individuals, SHGs and JLGs, who have availed of loans and
advances for business purposes having aggregate exposure of not more than
Rs.25 crore as on March 31, 2021.
c. Small businesses, including those engaged in retail and wholesale trade, other

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 than those classified as micro, small and medium enterprises having aggregate
exposure of not more than Rs.25 crore as on March 31, 2021.
d. Loans to individuals and small businesses (including SHG/ JLG) for agri. allied
activities having aggregate exposure of not more than Rs.25 crore as on March
31, 2021. The loan products covered under allied activities are dairy loan,
poultry farming, animal husbandry, pisciculture, bee-keeping and sericulture.
e. Accounts which were standard as on March 31, 2021 and slipped into NPA
between April 01, 2021 and the date of invocation, may preferably be
upgraded. The accounts which remain in NPA status can also be considered
under this resolution framework. The asset classifications and provisioning
norms of such accounts shall be governed by respective RBI guidelines.

3. Permitted features of resolution plans and implementation

The resolution plans implemented under this window include rescheduling of
payments, conversion of any interest accrued or to be accrued into another credit
facility, revisions in working capital sanctions, granting of moratorium, etc. based on
an assessment of income projections of the borrower. However, compromise
settlements are not permitted as a resolution plan for this purpose.

3.01 Term Loans

a. Term Loans with monthly / quarterly/ half yearly repayment intervals: Accrued
interest to be added to the Principal and based on the income generating
capacity of the activity, the repayment schedule and moratorium may be
finalized subject to the overall cap on extension of residual tenor of the loan
facilities, inclusive of moratorium period, shall be of two years.
b. Term Loans with Bullet repayment (like Gold Loans): Repayment tenor for
both, accrued interest, subsequent interest and principal may be extended upto
one year from the date of restructuring, which means the principal and the
entire accrued interest to be repaid within one year from the date of
restructuring .

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3.02 Working Capital Loans
In case of eligible WC facilities, the Branch/CSC may rework WC requirement
based on the revised Working Capital Cycle due to stress in economy caused
by COVID resurgence and based on the availability of stocks / book debts
available as primary security to the Bank.

3.02.01 In respect of borrowers specified at point no 2 (b) and (c), wherever the WC
eligibility / DP is reduced due to the above reasons and where the resolution
plan had been implemented in terms of RP – 1.0, the branch / CSC may
explore the possibility of reducing the margin upto a maximum level of 10%
for deserving cases. The decision with regard to above shall be taken by
September 30, 2021, with the margins and working capital limits to be
restored to the level as per the RP-1.0 by March 31, 2022.

3.02.02
a. In other cases where the WC eligibility/DP is reduced, the limit may be
reduced to that extent and the excess outstanding over and above the subject
limit needs to be carved out into a Working Capital Term Loan (WCTL). The
repayment period and installments of the subject WCTL may be finalized
based on the cash flow of the unit with a maximum tenor of 5 years including
moratorium of 6 to 12 months for payment of interest and principal from the
date of sanction.
b. The efforts should be made to recover monthly interest debited to these WC
accounts. However, wherever the need is felt that the interest servicing is not
feasible due to the strained business cycle, Funded Interest Term Loan (FITL)
account may be opened for servicing the monthly/ quarterly interest in CC loan
account during the moratorium period i.e. from the date of implementation of
resolution plan till the unit envisages resuming normal operations.
c. The repayment period and installments of FITL may be finalized based on the
cash flow of the unit with a maximum tenor of 3 years including moratorium of
6 months for payment of interest and principal from the date of sanction.
d. The WC limit to be reinstated to the original position when the unit resumes

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 normal operations, which will result into additional finance.
e. The additional facility on account of WCTL, FITL, etc. should not exceed 25%
of the original CC limit. If the additional facility exceeds 25% of the existing
limit, the additional amount to be brought in by the borrower and kept in the
form of Fixed Deposit (FD) with IDBI Bank under lien.

3.03 Other Features

a. Additional security for fresh loan: Additional security for increase in limit due
to restructuring may be obtained on best effort basis. However, extension of
existing security for additional funding to be mandatorily carried out.
b. Interest rate to be charged on additional finance as per extent ROI structure
without any compromise.
c. The Financial parameters contained in RBI circular no RBI/2020-21/34
DOR.No.BP.BC/13/21.04.048/2020-21 dated September 7, 2020 shall not be
applicable to resolution plans implemented under this window.

4. Convergence of the norms for earlier resolved loans

In cases of loans of borrowers where resolution plans had been implemented in
terms of the Resolution Framework – 1.0, and where the resolution plans had
permitted no moratoria or moratoria of less than two years and / or extension of
residual tenor by a period of less than two years, the resolution framework
window may be used to modify such plans only to the extent of increasing the
period of moratorium / extension of residual tenor subject to overall cap on
extension of residual tenor, inclusive of moratorium period if any permitted,
shall be two years, and the consequent changes necessary in the terms of the
loan for implementing such extension. The overall caps on moratorium and / or
extension of residual tenor granted under Resolution Framework – 1.0 and this
framework combined, shall be two years.

5. Due-Diligence: To be followed as per the Board approved Policy.

6. Documentation: As per the advice of Legal Department.

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7. Label Code: For identification of the accounts restructured under Resolution
Framework – 2.0, the branches need to update two label codes i.e ‘RESTRU’
and ‘AGRICOVID’in finacle system.

8. These operational guidelines shall be followed in conjunction with the Board

Approved policy on Resolution Framework-2.0 for COVID-19 Related Stress
issued by Risk Department vide circular no IDBI BANK/2021-
2022/134/CC/RMD/30 dated May 18, 2021.