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The Reserve Bank of India had incentivised lenders for early recognition and sale of non-performing assets (NPAs) by saying the shortfall between the sale value and the net book value can be spread over a period of two years.
This facility was earlier available only for NPAs sold till 31st March 2015. But, the regulator has extended this benefit for another year. Apart from this regulator had said to recover appropriate value of the NPA early on banks had been allowed to reverse the excess provision on sale of NPA to its profit and loss account in the year it receives the amounts.
