Академический Документы
Профессиональный Документы
Культура Документы
In the wake of the financial reforms undertaken by the Government of India based on
the Narasimhan Committee report I and II, prudential norms were introduced by
Reserve Bank of India to address the credit monitoring process being adopted and
pursued by the banks and financial institutions. To strengthen further the recovery of
dues by banks and financial institutions, Government of India promulgated The
Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and The
Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002.
What are NPAs ? Which Accounts Are Classified as NPA ? When An Account is
Termed as Non Performing Asset ?
An account is declared as NPA based on the recovery of installments and interest on
loans and advances and other aspects as per RBI norms. The updated norms to
declare the account as NPA are as follows as per RBI guidelines:1.
2.
3.
(iii)
(iv)
(v)
(vi)
(vii)
3.
4.
5.
constitution coming under the purview of Fundamental Rights and also should not
infringe in to the Human Rights and Principles of Natural Justice
The net non-performing assets (NPAs) of banks had gone up 51% in FY13 to
RS.92825/- crores. According to a recent CRISIL report, the gross NPAs of banks are
slated to increase from 3.3% in March 2013 to 4% by March 2014.The pertinent
question is, will the banks and the financial institutions shed heir jaundiced view towards
declaring the accounts as NPA and recovery of their dues coming under the category of
NPA and will they take a new and pragmatic and practical approach of focusing on
efficiency and fairness and taking a tolerant view of genuine difficulties while coming
down on mismanagement or fraud. as exhorted by the Governor of RBI? The answer is
a Big No if the present approach and attitude of the banks and financial institutions are
taken into consideration in the matter of recovery of dues and financing.
What Are the Views of New Governor RBI (Mr Raghuram Rajan) :
"Economic policymakers require an enormous dose of humility, openness to
various alternatives (including the possibility that they might be wrong), and a
willingness to experiment," Reghuram Rajan, the New Governor of Reserve Bank of
India wrote in a column on the Project Syndicate website. Regarding NPA recovery he
said, We have to improve the efficiency of the recovery system, especially at a time of
economic uncertainty like the present. Recovery should be focused on efficiency and
fairness presenting the value of underlying assets and jobs where possible,
even while redeploying unviable assets to new uses and compensating fairly. All
this should be done while ensuring that contractual priorities are met. The system has
to be tolerant of genuine difficulties while coming down on mismanagement or
fraud, he said. The RBI Governor has given the clarion call on a positive note to the
banks and financial institutions with regard to the recovery of dues. He may try to take
the horse to the pond. But will he be able to make it drink?