Reserve Bank of India has allowed All-India Term Lending and Refinancing Institutions (AIFIs) such as Exim Bank and Nabard to reverse the excess provision on sale of non-performing assets (NPAs) sold prior to February 26, 2014 to asset reconstruction companies to their profit and loss account. The guidelines will be also applicable to National Housing Board and Sidbi. The RBI in a notification issued in Mumbai said that it has now been decided to permit financial institutions to reverse the excess provision, when the sale is for a value higher than the Net book value (NBV), on sale of NPAs sold prior to February 26, 2014 to Securitisation Company (SC) Reconstruction Company (RC) to their profit and loss account. NBV is the value at which an asset is carried on a balance sheet. Earlier, the reversing of excess provision on sale of NPAs was available only for NPAs sold on or after February 26, 2014. The RBI said it has re-iterate that AIFI can now reverse excess provision arising out of sale of NPAs only when the cash received is higher than the NBV of the NPAs sold to ARCs. The Central bank also asked these financial institutions to disclose the quantum of excess provision reversed to the profit and loss account on account of sale of NPAs in the financial statements in `Notes to Accounts'.