NPA: Big Problem for Banking Sector NPA GNPAs

NPA: Big Problem for Banking Sector NPA GNPAs
Brief About NPA: It means if the borrower has failed to give interest or principal payments for 90 days, the loan is considered a non-performing asset. Rising NPA has become a big problem.


Bank Asset Portfolio:
1. standard assets
2. sub-standard assets
3. doubtful assets
4. loss assets.

Steps to take for solving Problems of NPA in India

This includes

  • Privatisation
  • Recapitalise, Reform
  • Reengineering of Banking System
  • Better Diagnostics to willful default
  • Strengthen RBI's Supervisory Capacity
  • Credit Information Bureau
  • Doubt Recovery Tribunals
  • Compromise Settlement Scheme
  • Securitisation Act 2002.

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