To curb this propensity Bangladesh Bank prescribed following instructions in the consideration process of loan rescheduling:
a. The bank must have a policy approved by its Board defining the circumstances/ conditions under which a loan may be rescheduled but not in contravention of the contents of the Bangladesh Bank circular. The policy must highlight the controlling mechanisms for avoidance of routine rescheduling/ repeat rescheduling wherein lies the doubt of recovery of full amount of loan.
b. For the unproductive sector such kind of repeat rescheduling should be restricted.
c. The bank must identify the causes behind the loan becoming non performing.
d. No consideration will be accorded for rescheduling of the borrower who is a habitual loan defaulters rather legal action should be initiated for recovery.
e. At the time of applying rescheduling down payment to be realized at a time in cash.
f. While considering the rescheduling proposal overall repayment capability of the borrower to be assessed properly.
h. Rescheduling of any loan must be justified in right perspective and its positive impacts on the bank's credit portfolio/ long term profitability, capital adequacy, liquidity etc.