Context
In order to ensure maximum recovery from distressed assets, the Reserve Bank of India (RBI) has allowed banks to go for compromise settlement of ‘fraud accounts’ and ‘wilful defaults’.
About the move:
What are the provision for borrowers?
The cooling period for farm credit exposures would be determined by the REs as per their respective Board approved policies. |
What are Non-performing assets (NPA)?
When a loan is classified as NPA?
Why is there a need to recognise NPAs?
What process does a bank undertake to recover NPA?
A National Asset Reconstruction Company Ltd. (NARCL) was announced in the Union Budget for 2021-2022 to resolve stressed loans amounting to about Rs.2 lakh crore in phases. |
Impact of NPAs on Financial Operations:
Verifying, please be patient.