RBI asks banks not to standardise bad loans on just getting interest payments
Zee News
The Reserve Bank of India has tightened the norms for recognition of dud assets and directed lenders not to standardise an NPA account after getting only interest payment.
New Delhi: In a significant move, the Reserve Bank on Friday tightened the norms for recognition of dud assets and directed lenders not to standardise an NPA account after getting only interest payment as well as to mandatorily mention the due dates along with details of interest and principal amounts.
The monetary authority has from time to time been issuing new/revised norms on dud asset classification as system-wide NPAs began to balloon.
Issuing some clarifications to all the extant provisions and including the ones issued on October 1, 2021, on the prudential norms on income recognition, asset classification and provisioning pertaining to advances (IRACP), the RBI asked banks not to upgrade an NPA account after getting only interest dues paid.
