Narendra Modi's Washington test

Narendra Modi's Washington test

If Modi gets the world’s biggest power right, his pursuit of larger global goals...
Small banks or banks for ‘small’ people?

Small banks or banks for ‘small’ people?

Unless appropriate sub-limits are imposed on loans, there is a serious...

NPA norms stressed, RBI may revamp soon

Jun 05 2014, 07:22 IST
Comments 0
New rules working, but banks need more time to fix bad loans New rules working, but banks need more time to fix bad loans
SummaryNew rules working, but banks need more time to fix bad loans

pay up on the 89th day to avoid the NPA tag.

With JLFs in action, customers have started paying up on the 59th day, a banker said. “If the JLF formation is now made mandatory after the 30th day, then the borrowers are forced to repay even earlier. This may cause a lot of financial stress for them, which may result in loan defaults later,” the banker said.

The SMA norms make it very difficult for banks to delay decision-making since they would need to make accelerated provisions for such accounts.

Single Page Format
Ads by Google

More from Frontpage

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...