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RBI to examine the treatment of stressed loan accounts across banks

Banks are required to classify NPAs as "substandard" assets, "doubtful" assets, and "loss" assets

reserve bank of india, rbi
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On April 6, the RBI directed all payments service providers to store their data only in India

Abhijit Lele Mumbai
The Reserve Bank of India (RBI) has increased scrutiny on stressed loans in the books of banks, examining how they are treating these accounts and provisioning for them.

This is in addition to the annual financial inspection (AFI) the RBI is doing for 2017-18 or FY18.

An executive with a public sector bank said the RBI’s staff going through their books had indicated that accounts under scrutiny could be non-performing assets (NPAs), though there remains some disagreement as to when an account can be classified as a NPA and provisions made for it.

The RBI staff apparently also said the exercise is aimed