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Chore Commiitee: Aastha Wahi 09MBMA42

The Reserve Bank of India constituted a working group under K.B. Chore in 1979 to review the cash credit system and suggest modifications to make it more rational or alternative credit facilities. The group recommended 21 points including separating normal and peak credit requirements, increasing owner contribution, penal interest for delays, improving information systems for production, credit, and critical accounts. It also suggested quarterly and half-yearly reporting forms for banks on estimates, actuals of production, finances, and sources/uses of funds.

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Abdul Najath
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25 views

Chore Commiitee: Aastha Wahi 09MBMA42

The Reserve Bank of India constituted a working group under K.B. Chore in 1979 to review the cash credit system and suggest modifications to make it more rational or alternative credit facilities. The group recommended 21 points including separating normal and peak credit requirements, increasing owner contribution, penal interest for delays, improving information systems for production, credit, and critical accounts. It also suggested quarterly and half-yearly reporting forms for banks on estimates, actuals of production, finances, and sources/uses of funds.

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Abdul Najath
Copyright
© Attribution Non-Commercial (BY-NC)
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Download as PPTX, PDF, TXT or read online on Scribd
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CHORE COMMIITEE

AASTHA WAHI
09MBMA42
• The Reserve Bank of India constituted a working
group under the chairmanship of K.B.Chore in April
1979 with the following terms of reference:

1. To review the operation of cash credit system with refernce


to gap between sanctioned credit limits and the extent of
their utilisation.
2. In light of the review to suggest:

a) Modifications in the system with a view to making


the system more amenable to rational management
of funds by commercial banks and/or
b) Alternative types of credit facilities for greater credit
discipline
RECOMMENDATIONS

1. System of Credit
2. Bifurcation of Credit Limit
3. Reduction in Over – Dependence on Bank Finance
4. Increase in Owner’s Contribution
5. Separation of Normal Non – peak and Peak level
Requirements
6. Temporary Accommodation Through Loan
7. Penal Interest
8. Information System
9. Relaxation of Norms
10.Check Lists

11.Delays In Sanctions
12. Bill system
13. Bill Limits
14. Drawee Bill System
15. Dues of Small Scale Units
16. Discount Houses
17. Production and Credit
18. Communication of Credit control Measures
19. Key Branches and Critical Accounts
20. Toning Communication
21. Bill Facilities
Information and Reporting System
• Quarterly Information System-Form I
a) Estimate production and sale for current and ensuring
quarter.
b) The estimate of current asset and liabilities for the
ensuing quarter.

• Quarterly Information System-Form II


a) Production and sales during current year and for the latest
completed year.
b) Asset and liabilities for the latest completed year.
• Half Yearly Operating Statements- Form III

a) Actual and estimated operating performance for the half


year ended.

• Half Yearly Operating Statements- Form IIIB

a) Actual and estimated sources and uses of funds for the


half year ended.

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