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RBI not reviewing 90-day NPA classification window to help small biz: Govt

FinMin said any delay in recognition of deterioration in asset quality removes pressure on the banks

Press Trust of India  |  New Delhi 

RBI
RBI

The ministry on Tuesday said the Reserve is not examining any proposal to extend the 90-day period for classification of non-performing assets (NPAs) or bad loans to help small businesses.

The extant prudential norms were brought in after extensive consultations and were based on the report of the Committee headed by M Narasimham on Sector Reforms, Minister of State for Santosh Kumar Gangwar said in the


"Reserve of has informed that it is not examining any proposal on extending the Non-Performing Assets (NPA) classification norms from the current 90-day window to help small and medium enterprises," he said in a written reply.

The minister said the prudential norms are one of the building blocks for financial soundness of Indian banks and any deviation would render the system weaker.

"Further, any delay in recognition of deterioration in asset quality removes pressure on the banks to deal promptly with the problem," he added.

Gross of NPAs of the public sector banks totalled more than Rs 6.41 lakh crore at March end. The gross NPAs of the sector were at about Rs 7.28 lakh crore.

First Published: Tue, July 18 2017. 16:47 IST
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