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RAJASTHAN FINANCIAL CORPORATION
UDYOG BHAWAN, TILAK MARG, JAIPUR

Ref.No.RFC/MTC-81/182                                                                         Dated : 06.02.2008

CIRCULAR

Sub : Procedure for calculation of Market Realisation Value (MRV) of land in respect of cases registered for settlement, sale of unit & � other FR matters.

A review of the prevailing procedure as contained in PG Circular No.1089 dated 02.11.2004 for calculation of Market Realisation Value (MRV) of land has been made in the light of suggestions/recommendations received from the field offices. It has now been decided to calculate MRV of land by adopting the weighted average method.� Therefore, the MRV of land is to be taken 1.15 times of the average value worked as per the present system or 85% of market rate whichever is less. The new procedure shall be applicable to cases registered for settlement, sale of units and other FR matters with immediate effect. The present procedure of calculation of MRV shall remain unchanged for loan sanction cases.

All concerned are advised to take a note and ensure compliance.

 

( B. N. SHARMA )
CHAIRMAN & MANAGING DIRECTOR.

Copy to :-

All Branch Offices.
Standard Circulation at HO.
DGM(A&I)/ Eastern & Western Zone.


RFC/PG/1089�

RAJASTHAN FINANCIAL CORPORATION
(Technical Cell)
Udyog Bhawan, Tilak Marg,
Jaipur-302005

CIRCULAR

Ref: RFC/MTC(81)/ 557 Dated: 1.11.2004


Sub : PROCEDURE FOR CALCULATION OF MARKET REALISABLE VALUE (MRV) OF ASSETS.

 Guidelines were issued vide PG circular No. 1051 dated 23/24.4.2004 for calculation of MRV of assets by field officers for properties being offered in collateral security as well as for industrial units taken into possession for taking decision in the matter of approval of sale.

The matter for calculation of MRV of units in possession was taken up in PC&CC meeting held on 13.10.2004 and the PC&CC has recommended� further modifications in the procedure for calculating MRV of assets with a view to speed up the process of sale of units� particularly looking to the fact that due to MRV rider, units are not� being disposed off quickly.

After considering the modifications recommended by PC&CC , the revised guidelines are as follows:

1. LAND:

(I) The present rate of land of RIICO may be high or low compared to market rate. The cost of land shall be based on the average of sub-registrar rate and RIICO rate(whichever is higher) and the market rate.

(ii) For land other than RIICO industrial areas where the sub-registrar rate is less than the market rate, the cost of land shall be based on the average of sub registrar rate and the market rate.

However , if the sub-registrar rate is more than the market rate, the cost shall be taken based on market rate alone instead of average rate.

(iii) For ascertaining market rate, the following sources may be contacted/tapped:

(a) Purchaser/Seller of recently transacted land in the area.
(b) Sub-registrars office for the actual sale transactions recently taken
 place.
(c) Any government office/Panchayat office/local or revenue authorities
 situated in the nearby vicinity,
(d) Neighbours/promoters of nearby land/industrial units.
(e) Rates realized in recent sales by the Corporation/RIICO.
(f) Real estate dealers in that area.

Details of sources contacted alongwith their complete name, address, telephone nos., date of contacting etc. shall be specifically mentioned/ recorded in the valuation report while calculating MRV.

(iv) For assessing rate of land outside the state for the purpose of collateral security, the same procedure as mentioned above at para (ii) and (iii) shall be applicable.

(v) Wherever the market value is more than 3 times of sub-registrar value the team calculating the MRV shall justify the same with detailed reasons. The Branch Manager shall invariably visit the site alongwith the team and will sign the report.

(vi) Where the valuation of the single property is more than Rs.1.00 crore and above, the Branch Manager may, at his discretion, inspect the property.

(vii) For the land/plots in the nearby vicinity where RIICO/any government agency/UIT etc. had auctioned the land/plot recently, rate approved in the auction will be considered while calculating MRV instead of average rate.

(viii) Due weightage should be given for slow/fast moving industrial areas and major factors like shape of the land, facing of the land, amount spent� on development like construction of roads, drainage, leveling, availability, locational advantage/disadvantage, possibility of conversion to residential/ commercial use, approachability etc., while estimating the MRV. The� reasons of weightage should be clearly mentioned in the report,

(ix)  For arriving at actual realisable value of land, RIICO dues may be deducted from the value of land calculated as per this circular ( in the add/less column at Point No. 1 for land in format annexed with the Circular)

2. BUILDING:

 The MRV of the buildings can be calculated as per the procedure adopted for valuations at the time of disbursement.� The present rates of building construction should be applied for arriving at the cost and then depreciation value is to be determined by applying depreciation rate @ 1% (straight line) for good quality buildings (such as Hotels, Hospitals, Pharmaceutical units, electronic units, computer centers, commercial complexes, showrooms, offices, etc.) and @ 2% p.a. (straight line) on all other type of buildings� Further deductions are to be made for the defects/ damages in the buildings.� The cost of defects / damages may be calculated on the basis of detailed costing based on latest BSR rates i.e. the cost to be incurred for removal / rectification of the defects / damages.

3. PLANT AND MACHINERY:

i) The purchase price of P&M and equipments should form the basis for the purpose of working out depreciated value. �

ii)While arriving at the value of the P&M, the condition of each machine, the completeness of the plant including the accessories, electrical required to be attached with the plant should be taken into consideration.� If the machinery is not complete then deductions are to be made on this account.

iii)The depreciation from the date of purchase to the date of calculating MRV should be taken @ 15% p.a. on written down value (WDV).

iv) However, for following type of P&M and equipments, the WDV so arrived is to be further reduced by 50% for arriving at MRV of these items:

 (a)Fast changing technology items / equipment.
 (b)Obsolete technology / plant and machinery / equipments
 (c)Chemicals plants / furnace / kilns.

 The illustrative (not exhaustive) list of fast changing technology items� / obsolete machinery is given below.� However, if the assessing officers want to include any other item / equipment, P&M depending upon their experience, market reports, etc., they should be referred to DGM(Tech) at Head Office for considering inclusion in the list.

a. FAST CHANGING TECHNOLOGY ITEMS/ EQUIPMENTS:

 1.Computer related machines
 2.Computer based Medical Equipments
 3.Laboratory equipments
 4.Office machinery like fax/ photostat etc.
 5.Automatic control equipments like Programmable Logic Controllers (PLC), Text Display and Operator Panels, Mini Controllers, Uninterrupted Power Supply (UPS), etc.

b. OBSOLETE TECHNOLOGY ITEMS / EQUIPMENTS / PLANTS :

 6.Cimmco Looms
 7.Old Model Vehicles like Hindustan, Ford and Transport vehicles of any make/ type� in possession for more than 5 years.
 8.Converted / Mini Gangsaws having less than 25 blades etc.
9.Mini Cement Plants
10.Granite tile plants upto size 1�x1�

v) MRV of electrification and erection and installation should be segregated from the total cost of P&M and should be shown separately so that if the main P&M is sold separately and is to be shifted by the purchaser to some other new place then the value under this head can be taken as scrap value.

vi) The MRV of P&M can be further reduced by 3% if the general maintenance/ upkeep of P&M is poor / un-satisfactory.�

vii) If the team calculating the MRV feels that due to market conditions / condition of the machines / other reasons, the �Plant & Machinery� can be sold at a better price than the price arrived at by the laid down procedure, the same can be increased by the team in the interest of the Corporation mentioning the reasons in the report.

viii) In some cases, there may be no demand of a particular type of P&M in the market or the machinery has become junk then the same may be taken as scrap having negligible value and MRV be calculated accordingly.

4. OTHER ASSETS:

 In addition to land, building and Plant & machinery, every industrial unit is having some equipments which also have to be given due care while arriving at the MRV of total assets which has-been taken into possession.� The basis of arriving at the MRV of such equipments shall be a balanced application of mind as to what price a particular miscellaneous equipments can fetch. While assessing such value, the present market value of such equipments, less depreciation and condition of the equipment is to be considered.

5. REVISION IN MRV:

A) If unit is not sold even after one year of take over of assets or after 10 auctions, whichever is earlier, MRV be revised by a team consisting of a Technical Officer, Finance Officer and the Branch Manager.�

B) If the unit is not sold for next one year, even after revision of MRV or further 10 auctions, whichever is earlier,MRV be again revised by a team consisting of Technical Officer, Finance Officer, concerned Branch Manager and an officer deputed by the DGM ( R ) from Regional Office.

C) If the unit is not sold even after adopting step ( B ) above for a period of another one year or further 10 auctions, whichever is earlier, then DGM ( R ) should be associated with the team mentioned at step ( B ) and the MRV may again be revised.�

6. GENERAL POINTS:

i) For calculating MRV of industrial units being offered for the purpose of collateral security, the value of P&M will be treated as nil.

ii)The above procedure for calculating MRV of land and building will be same both for properties being offered in collateral security and industrial units to be taken into possession/in possession for taking decision in the matter of approval of sale.

iii)The MRV will be initially� calculated by a team of two officers out of which one should be of technical discipline.

iv)A certificate with respect to adhering to the Circular strictly be recorded by the team in the report invariably to ensure that the actual MRV has been worked out.

Since now, other State Govt. dues are paid by the Corporation as per 70:30 norms of the Govt. and details of dues of Corporation, Banks, Govt. Subsidy etc. are kept to be accounted for separately by the Branch Manager, point 6 ( dues) and 7 (Institutional dues)� of the proforma annexed with the earlier circular are dispensed with. Revised� format in which the MRV is to be assessed is enclosed.� All concerned are enjoined upon to follow the revised procedure / guidelines in assessing MRV of the assets henceforth.

The above guidelines are in supersession to all earlier guidelines on the subject, for internal use only and shall come into force with immediate effect.

�(Sanjay Dixit)
Chairman & Managing Director


RAJASTHAN FINANCIAL CORPORATION
(Technical Cell)

MARKET REALISABLE VALUE OF ASSETS

1

Particular of land whether industrial /Residential/ Commercial

Size and area alongwith schedule

Year of acquisition

Value� as per Corporation�s record.

Present market value

Add/ less for� locational advantage/ disadvantage market demand, RIICO dues , any other factor ( to be specified)

Net MRV

Remarks, if any

2

Building

Particulars of assets

Covered area

Year of construction

Value as per Corpn�s record

Present market value (basis latest PWD X-3/PG Circular)

Less for damage/ defects,if any

Add/ less for locational advantage/ disadvantage market demand any other factor (to be specified)

Net MRV

Remarks, if any.

3

Plant & machinery

Particulars/ items

Specifiation/ size

Year of acquisiton

Value as per Corporation�s record

Value after depreciation @ 15%

Further deductions for incompleteness and� for fast changing/ obsolete technology, chemicals plants/ furnace/ vehicle etc.l

Further deductions for poor maintenace (maximum upto 3% ) applicable for item 3(I) only

Net MRV

Remarks, if any.

i. General type

ii. Fast changing/ obsolete technology

iii. Chemical plants/ furnace/ kilns

iv. Transport vehicle

Sub Total (I to iv)

v. Electrification items

vi. Erection & installation

Sub Total ( v + vi)

4

Other assets (itemwise)

5

Total MRV ( 1 to 4)


----------------------------------------------------------------------------------------------------------------------------

RAJASTHAN FINANCIAL CORPORATION
UDYOG BHAWAN, TILAK MARG, JAIPUR

 

Ref.No.RFC/MTC-81/182������������������������������������ Dated : 06.02.2008

 

CIRCULAR

Sub : Procedure for calculation of Market Realisation Value (MRV) of
��������� land in respect of cases registered for settlement, sale of unit &
��������� other FR matters.

 

A review of the prevailing procedure as contained in PG Circular No.1089 dated 02.11.2004 for calculation of Market Realisation Value (MRV) of land has been made in the light of suggestions/recommendations received from the field offices. It has now been decided to calculate MRV of land by adopting the weighted average method.� Therefore, the MRV of land is to be taken 1.15 times of the average value worked as per the present system or 85% of market rate whichever is less.� The new procedure shall be applicable to cases registered for settlement, sale of units and other FR matters with immediate effect.� The present procedure of calculation of MRV shall remain unchanged for loan sanction cases.

All concerned are advised to take a note and ensure compliance.

 

( B. N. SHARMA )
CHAIRMAN & MANAGING DIRECTOR.

Copy to :-

All Branch Offices.
Standard Circulation at HO.
DGM(A&I)/ Eastern & Western Zone.

---------------------------------------------------------------------------------------------------------------------------------

RFC/PG/1262

RAJASTHAN FINANCIAL CORPORATION
(Technical Cell)
Udyog Bhawan, Tilak Marg,
Jaipur-302005

 

Ref: RFC/MTC(81)/334                                                                                                    Dated : 04/05.05.2009

CIRCULAR

Sub :PROCEDURE FOR CALCULATION OF MARKET REALISABLE VALUE (MRV) OF ASSETS.

Detailed guidelines were issued vide PG circular No. 1089 dated 02.11.2004 for calculation of MRV and the point No. 5(B) and 5 (C) of the circular are reiterated as under:

5.B) If the unit is not sold during next one year, even after revision of MRV or further10 auctions, whichever is earlier, MRV be revised again by a team consisting of Technical Officer, Finance Officer, concerned Branch Manager and an officer deputed by the DGM ( R )� from Regional Office.

5.C) If the unit is not sold even after adopting step ( B ) above for a period of another one year or further 10 auctions, whichever is earlier, then DGM ( R ) should be associated with the team mentioned at step (B) and the MRV may again be revised.

Since the RO offices have been closed, the point No. 5 (B) and (C) are amended as under:

5.B) If the unit is not sold during the next one year even after revision of MRV or further 10 auctions, whichever is earlier, MRV be revised again by a team consisting of Technical Officer, Finance Officer, concerned Branch Manager and one officer from HO nominated by the GM (D).

5.C) If the unit is not sold even after adopting step ( 5.B ) above during a period of another one year or further 10 auctions, whichever is earlier, the MRV be again revised by a team consisting� of Technical Officer, Finance Officer, concerned� Branch Manager and one officer from HO nominated by CMD.

The above amendments may be noted and action be taken accordingly.

 

Further, it has been observed that the guidelines for calculation of MRV issued vide above circular are not being followed in letter and spirit.� The guidelines were issued vide above circular for calculation of MRV� of assets for properties being offered for collateral security as well as for industrial units taken into possession, for taking decision in the matter for approval of sale.�

It has been observed that many times units are not disposed in view of unrealistic MRV calculated without giving due weightage to the factors laid down in above circular.� It is therefore, reiterated that guidelines laid down in above circular be followed strictly so as to have fair assessment of MRV which may lead to quick disposal of units under possession.��

The above amended guidelines should be followed strictly.� All the concerned may take action accordingly.

 

�(Atul Kumar Garg)
Chairman & Managing Director.

Copy to :

(i)����������� All BOs/SOs
(ii)���������� DGM(A&I), Western zone and Central Zone .
(iii)��������� Standard circulation at HO

 

                                  RFC/PG/1298      
RAJASTHAN FINANCIAL CORPORATION
UDYOG BHWAN, TILAK MARG,
JAIPUR
(TECHNICAL CELL)
Ref.No.RFC/MTC-81/529                                                       Dated :    16.12.2009

CIRCULAR

Sub :    Procedure for calculation of MRV of assets for cases seeking
loan under FAA Scheme in CRE Sector.

Guidelines for computation of MRV related to loan purpose were issued vide circular no. PG-1089 dated 01/02.11.2004.  Thereafter, amendment was circulated vide Circular dated 06.02.2008 for FR matters.  Now, it has been observed that there can be new cases wherein the promoters offer to mortgage the land and the building constructed thereon as prime security.  In some cases either the flats/property may have been sold out or booking advance against the same may have been accepted by the promoter before mortgaging the property as prime security.

The matter was discussed by the PC&CC in its meeting held on 04.11.09 wherein it has been recommended that while computing MRV for the cases in which either the flats/property has been sold out or booking advance against the same has been received, due reduction in the MRV of the prime security may be made to arrive at a realistic value.  It has, therefore, been decided that MRV of the entire property shall be calculated as per procedure laid down vide circular no.P&G-1089 dated 01/02.11.2004 and thereafter, the following procedure should be opted for MRV computation for the proposals received under FAA Scheme from CRE Sector :-

i) The MRV of the sold flat/property should be reduced from the total MRV.

ii) In cases where the booking amount/advance is below 50% of the sale price/MRV of the flat/property, then it should be reduced to the extent of 50% of the total MRV of the property against which advance has been taken.

iii) In case of booking amount/advance is more than 50% of the sale price/MRV of the flat/property, then value of that flat/property should be reduced fully for that portion from the total MRV of the project/property.

The present system for computing MRV for loan cases under other schemes and for FR purpose shall remain unchanged.

All concerned are advised to take a note of above.

 

(  ATUL KUMAR GARG )
Chairman & Managing Director
Copy to:
(i)         All BOs/SOs
(ii)        DGM(A&I), Western zone and Central Zone .
(iii)      Standard circulation at HO

 

 

RAJASTHAN FINANCIAL CORPORATION
UDYOG BHAWAN, TILAK MARG,
JAIPUR
(TECHNICAL CELL)

Ref.No.RFC/MTC-81/ 539                                                      Dated : 25.01.2010   

CIRCULAR

Sub :    Procedure for calculation of Market Realisable Value (MRV) of
land in respect of cases registered for settlement, sale of unit
and other FR matters.

 

Detailed guidelines for computation of MRV of land were issued vide circular no. PG-1089 dated 01/02.11.2004. Thereafter, amendment was circulated vide Circular No.RFC/MTC-81/182 dated 06.02.2008 for the procedure for calculation of MRV of land in respect of cases registered for settlement, sale of unit and other FR matters.  In the said circular guidelines were issued that while calculating MRV of land for FR matters, the MRV of land is to be taken 1.15 times of the average value worked out as per the present PG Circular No.1089 dated 01/02.11.2004 or as 85% of market rate (whichever is less).

A review of the prevailing procedure has been made and it has been decided that henceforth the following procedure is to be adopted while calculating MRV of land for the cases for registration of settlement, sale of units & FR matters.

  1. MRV of the land is to be calculated on the basis of RIICO/DLC rate where the market rate is less than RIICO/DLC rate.

 

  1. MRV of the land is to be calculated on the basis of average rate (Market rate & RIICO/DLC rate) in cases where market rate is equal or more up to 40% than RIICO/DLC rate.
  2. MRV of the land is to be calculated as 1.15 times of the average rate or 85% of market rate (whichever is less) as per guidelines issued vide circular No.RFC/MTC-81/182 dated 06.02.2008 in the cases where market rate is 40%  above RIICO/DLC rate.

 

All concerned are advised to take a note of above & take action accordingly.

 

(  ATUL KUMAR GARG )
Chairman & Managing Director
Copy to:
(i)         All BOs/SOs
(ii)        DGM(A&I), Western zone and Central Zone .
(iii)      Standard circulation at HO

 

 

RFC/O&M/700

RAJASTHAN FINANCIAL CORPORATION
UDYOG BHAWAN, TILAK MARG,
JAIPUR
(TECHNICAL CELL)

Ref.No.RFC/MTC-81/                                                            Dated : 22.07.2010  

CIRCULAR

Sub :    Procedure for calculation of Market Realisable Value (MRV) of
           Land.

 

Attention is invited towards PG Circular No. 1089 dated 01/02.11.2004 vide which guidelines for computing MRV of prime security and collateral security were circulated.  The methodology being adopted by the Corporation for computation of MRV was reviewed in detail and it has been decided to continue the prevailing guidelines for ascertaining the MRV for loan cases.

As the prevailing guidelines are based on the system of averaging the market rate as well as DLC rate, thus equal importance should be given in considering these values.  It has been observed that although the field offices are enclosing a copy of the DLC rates/RIICO rates prevailing in the area but proper information is not mentioned about the basis being considered to ascertain the market rate prevailing in the area where the property is located.  This results in misrepresentation of the MRV.

It is, therefore, directed that, any two (one government source is must) of the following sources may be contacted/tapped for ascertaining fair market rate of the land proposed to be offered as prime security/collateral security in the format given below :-

S.No

Source

Name & Tel. No. of the person contacted

Date & Times of visit

Market rate

a)

Purchaser/seller of recently transacted land in the area

 

 

 

b)

Sub-Registrar’s office for the actual sale transaction recently taken place

 

 

 

c)

Any Govt. office/Panchayat office/Local or Revenue authorities situated in any nearby vicinity

 

 

 

d)

Neighbours/promoters of nearby land/ industrial units

 

 

 

e)

Rate realized in recent sales by the Corporation/RIICO

 

 

 

f)

Real Estate Dealers in that area

 

 

 

g)

Rate earlier considered by the empanelled valuer of the Corpn. if any.

 

 

 

h)

Remarks

 

 

For the above quoted rates, supporting written document must be obtained and enclosed with the report.

It may be ensured that initially the MRV is computed by a team of two officers from Branch Office (atleast one from technical discipline).  The Branch Manager should examine the MRV and if the market rate is more than three times of DLC/RIICO rate then the Branch Manager should counter check the MRV.

It should be further ensured by the Branch Manager that the duly filled aforesaid proforma is a part of the MRV computation sheet and has been enclosed in the file for branch level cases and is forwarded along with MRV computation sheet to CAS for HO level cases.

All concerned are advised to take a note of above & take action accordingly.

(  G. S. SANDHU )
Chairman & Managing Director
Copy to:
(i)         All BOs/SOs
(ii)        DGM(A&I), Western zone and Central Zone .
(iii)      Standard circulation at HO

 

RFC/P&G/1397

 

RAJASTHAN FINANCIAL CORPORATION

UDYOG BHAWAN, TILAK MARG,

JAIPUR

(TECHNICAL CELL)

 

Ref.No.RFC/MTC-81/289                                                                   Dated : 21/23.09.2011

 

CIRCULAR

 

Sub :    Procedure for calculation of Market Realisable Value (MRV) of

Land.

 

 

Attention is invited towards PG Circular No. 1089 dated 01/02.11.2004 vide which guidelines for computing MRV of prime security and collateral security were circulated.  Further the guidelines for ascertaining fair market rate of land proposed for prime security/collateral security were issued vide O&M Circular No.700 dated 22.07.2010 vide which it was mandatory for obtaining one government source for ascertaining market rate of land.

 

It has been observed that branches are facing difficulty in getting supporting document from one mandatory government source about market rate of land. Therefore, the matter was placed before PC&CC and after detailed discussions it was decided that :-

 

1.         The existing system of calculating MRV shall continue with the modification of  dispensing with provision of obtaining proof for market rate of land from at least one government source (as required vide O&M Circular No.700 dated 22.07.2010).

 

2.         Proposal for fixing maximum limit (ceiling) of MRV of land was also approved in multiple of DLC rates.  The approved ceiling of MRV is as under :-

 

 

S.No.

Location

Ceiling for MRV of land

1

Jaipur, Jodhpur, Kota, Udaipur, Bikaner, Ajmer

a) Commercial Land

b) Residential fully Developed colonies*

c) Residential non developed localities

 

 

1.6 times of DLC rate

1.6 times of DLC rate

1.5 times of DLC rate

2

Other district headquarters except above and SDO headquarters

a) Commercial Land

b) Residential fully developed colonies*

c) Residential non-developed localities

 

 

1.5 times of DLC rate

1.5 times of DLC rate

1.4 times of DLC rate

3

Other than above mentioned headquarters

a) Commercial Land

b) Residential

 

 

1.4 times of DLC rate

1.3 times of DLC rate

4

On National Highway (outside municipal limit)

1.4 times of DLC rate

5

On State Highway (outside municipal limit)

1.3 times of DLC rate

6

Other than Highways

Equal to DLC rate

7

Industrial Land in RIICO saturated and fast moving areas.**

1.6 times of RIICO/DLC rate whichever is higher.

8

Industrial Land in RIICO un-saturated and slow moving areas.***

1.4 times of RIICO/DLC rate whichever is lower.

9

Indl. Land outside RIICO area but availing infrastructure facilities of RIICO area.

a) Adjacent to saturated and fast moving area.

b) Adjacent to un-saturated, slow moving areas.

c) Isolated areas****

 

 

 

1.4 times of RIICO/DLC rate whichever is lower.

1.2 times of RIICO/DLC rate whichever is lower.

DLC rate of land.

 

 

The DLC rate to be taken for the above calculation should not be more than a year old.  If the DLC in the area has not been revised during the past one year, due weightage of 10% for each year on the straight-line-method should be given.

 

In case market rate in the area is found less than DLC rate of land the market rate is to be considered alone for calculating the MRV of land.

 

*Fully developed colonies : where all infrastructure facilities like road,

             street lights, water, sewerage and power lines are available.

 

          **Saturated and fast moving areas, specified by the Corporation for financing

 under FAAS and SARAL Scheme.

 

        ***RIICO Industrial Areas other than saturated and fast moving areas.

 

      ****Erstwhile isolated areas as defined in the latest circular issued by the  

            Corporation in this regard.

 

These guidelines are to be followed while considering financial assistance whereas for FR matters, existing guidelines circulated vide circular (MTC-81/182 dated 06.02.2008 and MTC-81/539 dated 25.01.2010) shall continued to be followed.

 

Guidelines circulated vide PG Circular No.1332 dated 21.06.2010 stands withdrawn.

 

All concerned are advised to take a note of above and take action accordingly.

 

 

 

(  Yaduvendra Mathur )

Chairman & Managing Director

Copy to:

(i)         All BOs/SOs

(ii)        DGM(A&I), Western zone and Central Zone .

(iii)       Standard circulation at HO

 

RFC/P&G/­­­­­1400

 

RAJASTHAN  FINANCIAL CORPORATION

(TECHNICAL CELL)

UDYOG BHAWAN,

TILAK MARG,

JAIPUR.

 

Ref. No.F.RFC/MTC-166(A/310                                          Dated : 02/03.11.2011

 

CIRCULAR

 

 

          Reg:  Procedure & Guidelines –Schedule1/6 A and LA(S)1/6 B

 

 

The Corporation has framed guidelines for financing different type of industries from time to time on the basis of its past experience, government guidelines and scope of a particular industry etc. These guidelines are available in PG at schedule 1/6 A – Restrictive list of RFC and schedule 1/6 B – Policy guidelines for selected industries.

 

Above guidelines were framed long back and now the industrial scenario is changing day to day, therefore, it has been decided to review the same and frame fresh district-wise guidelines .

 

In view of above, it has been decided to keep the Schedule 1/6 A and 1/6 B in abeyance till fresh guidelines are framed. However, till fresh guidelines are framed, cases may be appraised & decided on merits.

 

All concerned are advised to take a note of the same and process the loan cases accordingly.

 

 

                                                                                                         (Yaduvendra Mathur)

Chairman Cum Managing Director

Copy to :

1-         All BO(s)/SO(s).

2-         Standard Circulation at HO.

3-         DGM (A&I), Ajmer/ Jodhpur.


 

RAJASTHAN FINANCIAL CORPORATION

UDYOG BHAWAN, TILAK MARG,

JAIPUR

(TECHNICAL CELL)

 

 

Ref.No.RFC/MTC-81/MBD/Gen.77/311                                             Dated : 01/03.11.2011

 

 

CIRCULAR

 

 

Sub :    Relaxation of collateral security norms for granite slab units.

 

 

Attention is invited to PG Circular No.1220 dated 13.02.2008 vide which the policy guidelines (including norms for collateral security) for financing granite slab manufacturing units (size 2’x8’ and above) were circulated.

 

A reference regarding relaxation in collateral security norms was received from Branch Office, Abu Road which was placed before PC&CC meeting held on 20.10.2011.

 

After detailed discussions, it has been decided that the branch should ensure that proposed loan is secured by MRV of land & building (prime assets) and for gap, if any, additional collateral security is taken in granite slab manufacturing units (water based units) with size 2’x8’ and above.

 

All concerned are advised to make note of it and take necessary action accordingly.

 

 

 

(  Yaduvendra Mathur )

Chairman & Managing Director

Copy to:

(i)         All BOs/SOs

(ii)        DGM(A&I), Western zone and Central Zone .

(iii)      Standard circulation at HO

 

 

 

 

RAJASTHAN FINANCIAL CORPORATION

UDYOG BHAWAN, TILAK MARG,

JAIPUR

(TECHNICAL CELL)

 

Ref.No.RFC/MTC-81/317                                                                   Dated : 14/15.11.2011

 

CIRCULAR

 

Sub :    Procedure for calculation of Market Realisable Value (MRV) of

Land.

 The revised guidelines for computing MRV of land were circulated vide PG Circular No.1397 dated 23.09.2011.

 We have been receiving references from BOs, informing difficulties being faced by them in some RIICO areas where markets are substantially high (areas where RIICO have conducted auction of the lots ) compared to RIICO rates and it has been recommended to consider auction rate of RIICO/ government agencies as market rate for calculating MRV of land.

 The matter has been examined and it has been decided to consider the auction rate fetched in auction of RIICO / any government agency as market rate in the vicinity of particular area for calculating MRV , on the basis of averaging (average of RIICO rate and market rate ) and “ Capping ” as prescribed vide above referred circular may not be applied in that particular area. The guidelines circulated vide above PG circular shall be continued for the other areas.

 All concerned are advised to take a note of above and take action accordingly.

 

Sd/-

(  Yaduvendra Mathur )

Chairman & Managing Director

Copy to:

(i)         All BOs/SOs

(ii)        DGM(A&I), Western zone and Central Zone .

(iii)       Standard circulation at HO

 

 

 

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