RBI highlights inconsistencies in BDDR treatment; issues revised instructions to standardise co-operative banks' practices

All provisions as per Income Recognition, Asset Classification, and Provisioning (IRACP) norms, regardless of whether they are accounted for under “BDDR” or another head, must be charged as an expense to the P&L Account in the accounting period in which they are recognised. These provisions will continue to be eligible for regulatory capital purposes as defined in existing capital adequacy guidelines.