In line with international practices and as per the recommendations made by the Committee on the Financial System (Chairman Shri M. Narasimham), the Reserve Bank of India has introduced, in a phased manner, prudential norms for income recognition, asset classification and … [Read more...] about Income Recognition, Asset Classification (IRAC) and Provisioning Norms
NON-COOPERATIVE BORROWERS
The issue of Non-Performing Assets (NPAs) in the Indian banking sector has become the subject of much discussion and scrutiny. When the borrower stops paying interest or principal on a loan, the lender institutions will lose money. Such a loan is known as Non-Performing Asset … [Read more...] about NON-COOPERATIVE BORROWERS
WILFUL DEFAULTERS
A wilful defaulter is an entity or a person that has not paid the loan back despite the ability to repay it. The RBI has been initiating every effort to ensure that wilful default should not adversely affect the health of the banking system. The Reserve Bank of India (RBI) is in … [Read more...] about WILFUL DEFAULTERS
EARLY WARNING SIGNALS (EWS) AND RED FLAGGED ACCOUNTS (RFA)
Banks in India are reeling from the overhang of bad loans on their books across both the public and private sector. After a prolonged period of stress, which saw the gross non-performing assets (GNPA) of scheduled commercial banks rising drastically. The Reserve Bank of … [Read more...] about EARLY WARNING SIGNALS (EWS) AND RED FLAGGED ACCOUNTS (RFA)
GARNISHEE ORDER & ATTACHMENT ORDER
GARNISHEE ORDER A Garnishee Order is an order issued by court under provisions of Order 21, Rule 46 of the Code of Civil Procedure, 1908. The concept of 'Garnishment' has been introduced in civil procedure code by the amendment Act, 1976 and is a remarkable piece of legislation. … [Read more...] about GARNISHEE ORDER & ATTACHMENT ORDER