Public sector banks will implement common staff accountability policies for loan accounts up to Rs 50 crore, excluding fraud accounts, turning into non-performing assets (NPAs) on or after April 1, 2022.
This is expected to ensure a common approach across state-owned banks in dealing with staff accountability for accounts becoming NPA and save employees for undue hardships.
The finance ministry had advised on broad guidelines (revision) to be adopted by all PSBs. Banks should revise Staff Accountability Policies based on these broad guidelines and frame the procedures with approval of the respective boards.
Indian Banks’ Association in a statement said