CGTSI/(44)/1016

September 01, 2006

All Member Lending Institutions of CGTSI

Circular No. 32 / 2006-07

One time extension of time period for lodgment of application for guarantee cover under CGS

Although most Member Lending Institutions (MLIs) were able to lodge applications in CGTSI's new organization wide software implemented since April 2005; CGTSI has been receiving representations from some of the operating offices of Member Lending Institutions (MLIs) that due to the problems encountered by them while lodging the applications in the new software, a significant number of applications could not be lodged/lodged properly by them within the prescribed time, during FY 2005-06. Similarly, at CGTSI's end we find that we are unable to retrieve some of these applications for approval because of various software specific reasons. However, the new software has now been mostly stabilized since March end 2006 in so far as it pertains to the guarantee approval module. In order to afford another opportunity to such MLIs to lodge the otherwise time barred applications it has been decided to give a one time exemption to facilitate lodgment of such applications.

In view of the various representations received from such MLIs, it has been decided to provide a limited exemption for the benefit of those MLIs who could not lodge the application/ get approval for lodged application as under:

1. The one time exemption would be applicable for credit facilities sanctioned by the MLIs between January 01, 2005 and March 31, 2006.

2. The applications should be lodged / re-lodged, as the case may be, on or before October 31, 2006. The MLI to specifically confirm in the remark column at the bottom of the application form as under:

'that the loan facility sanctioned is a standard asset and is not a stressed asset, it is regular with no defaults as on the date of lodging the application, under this extended period upto October 31,2006 and no reschedulements have been granted in the account'.

MLIs are advised that that the above extension is a one time measure and no further exemptions would be available to them. Henceforth the application(s) would have to be lodged with CGTSI within the stipulated time. We request you to kindly bring this to the notice of all the Zonal / Regional / Branch offices of your Bank/ Institution. We solicit your cooperation in covering maximum proposals under the Scheme

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Yours faithfully,

Sd/-

(P.M.Radhakrishnan)

Deputy General Manager