Fema / RBI : RBI has standardized the 90-day NPA classification rule across all NBFC categories, including NBFC-BL entities, effective 31 March...
Finance : MSMEs in Jammu and Kashmir continue to face auctions and asset seizures despite mandatory RBI restructuring safeguards. The articl...
Fema / RBI : The functioning of co-operative banks has always demanded a delicate balance between regulatory compliance, financial prudence, an...
Fema / RBI : Explore Indias debt restructuring plans and their effectiveness in addressing the rising NPAs in the banking sector amid ongoing f...
Fema / RBI : Learn about Non-Performing Assets (NPA) classification, categories, and provisioning requirements as per RBI norms for effective a...
Fema / RBI : India’s banks record a sharp decline in bad loans, with gross NPAs at 2.15% by September 2025, highlighting the impact of sustai...
Fema / RBI : Gross non-perofrming assets (NPAs) improves from 11.33% in FY2017-18, to 13.52% in FY2018-19, to 14.69% in FY2019-20 As per Reserv...
Fema / RBI : ABG Shipyard was incorporated on 15 March 1985, has been banking arrangements since 2001. Financed under Consortium arrangement ov...
Fema / RBI : Gross non-performing assets of scheduled commercial banks have declined As per Reserve Bank of India (RBI) data on global operatio...
Fema / RBI : We advise that as per the circular dated April 17, 2020 on asset classification and provisioning, in respect of all accounts class...
Corporate Law : The Supreme Court held that under the amended Section 13(8) of the SARFAESI Act, the borrower's statutory right of redemption ends...
Corporate Law : NCLAT ruled that reclassifying corporate debtor accounts as standard cannot affect a creditor’s right to pursue personal guarant...
Corporate Law : NCLT Chennai rules IBC not right for ED attachment revocation in Nathella Sampath Jewelry case. Detailed analysis of jurisdictiona...
Income Tax : Explore the ITAT Bangalore order in Belur Urban Co-operative Bank vs ITO. Learn why reassessment on interest in NPA loans is direc...
Income Tax : ITAT Pune held that it is settled legal position that interest on (Non-Performing Assets) NPAs cannot be taxed on accrual basis....
Finance : International Financial Services Centres Authority (IFSCA) Clarifies Due Date for Recognition of Non-Performing Assets (NPAs) in...
Fema / RBI : Reserve Bank of India RBI/2022-23/130 DOR.ACC.REC.No.74/21.04.018/2022-23 October 11, 2022 Madam / Dear Sir, Reserve Bank of India...
Fema / RBI : The ‘previous 90 days period’ for determination of ‘out of order’ status of a CC/OD account shall be inclusive of the day ...
Fema / RBI : The extant instructions on IRACP norms specify that an amount is to be treated as overdue if it is not paid on the due date fixed ...
Fema / RBI : With a view to moving towards international best practices and to ensure greater transparency, '90 days' overdue1 norms for identi...
Guidelines on Asset Classification- All accounts need to be classified into four categories taking into account the degree of well defined credit weaknesses and extent of dependence on collateral security for realisation of the dues as given under :- 1. Standard Assets- Standard asset is one which does not disclose any problem and which does not carry more than normal risk attached to the business. Such an asset is not an NPA. However, Central Govt. Guaranteed advances, although categorized as NPA for the purpose of Income Recognition, are to be treated as Standard Assets (Govt Guaranteed) unless Govt repudiates its guarantee when invoked.
There can be variety of credit facilities. In the course of adhering to the terms and conditions; like borrowers, the Banks too can commit mistakes and there can not be any doubt in this regard. Looking at the provisions of the SARFAESI Act, 2002, the rules, the practice and few precedents; borrowers and also professionals alike are doubtful in getting relief from the specially constituted Debt Recovery Tribunal which entertains appeals from the borrowers under section 17 of the Act. I have heard many borrowers saying that the Debt Recovery Tribunals will support the Banks and their actions, and will not effectively listen to the grievances of the borrowers. Such an assumption on the functioning of Debt Recovery Tribunals and Appellate Tribunals may not be correct though the system needs to look within. The Courts too have understood the difficulties in approaching the Civil Courts in recovering the outstanding dues and the Courts have upheld the provisions of SARFAESI Act, 2002 with few suggestions in the Course.
Accordingly, Reserve Bank of India hereby permits Regional Rural Banks to open branches in Tier 3 to Tier 6 centres (with population up to 49,999 as per Census 2001 – details of classification of centres tier-wise furnished in Annex II) without having the need to take permission from Reserve Bank of India in each case, subject to reporting, provided they fulfil the following conditions as per the latest inspection report.
Public sector banks in India had combined gross non-performing assets (NPAs) of Rs 57,301 crore during 2009-10, up 30 per cent from the previous fiscal, Parliament was informed on Tuesday. NPAs comprised 2.27 per cent of public sector banks’ (PSBs) g
It true that the Banks suffer a lot in recovering the outstanding dues from the borrowers in the absence of special enactment like SARFAESI Act and the object of the enactment is really laudable. It is a procedural change basically to enable the Banks to recover the loans speedily and in my opinion, it is not the intention of the legislature to put the borrower remediless if they are really aggrieved at the action initiated by the Banks under SARFAESI Act, 2002.
The Government of India has approved the Operational Guidelines for the Swavalamban Scheme which was announced by the Union Finance Minister in his speech of 2010-11. The Scheme is applicable to all citizens in the unorganised sector who join the New Pension Scheme (NPS) subject to their meeting the eligibility criteria.
The profitability of RRBs, as a segment, has been improving. However, some of the factors responsible for losses in RRBs are identified as : low recovery, high NPA, low business level, low productivity per branch and per staff, high cost structure, poor financial management, limited area of operation, non-viable level of operation in branches located in resource-poor areas etc. Further, one of the RRBs, namely Puduval Bharthiar Grama Bank, which was set up in March 2008, has not yet reached a breakeven point;
The assessee, a NBFC, made a ‘Provision for NPA’ in terms of the RBI Directions 1998. It claimed a deduction for the said provision u/s 36 (1)(vii) on the ground that as it was debited to the P&L Account and reduced the profits, it was a ‘write off’. In the alternative, it was claimed that there was a diminution in the value of its assets
Also, there have been incidents where mortgaged properties were auctioned off at “undervalued” prices, the sources said. The meeting is to find out whether there was any actual mischief or if it was due to practical difficulties in finding a buyer to pay a higher value for the property as the registered value shown on paper would have been lesser than its actual value, they added.
CAPITAL adequacy ratio—the minimum amount of capital banks have to set aside while lending—of Indian banks would continue to remain higher than the minimum regulatory requirement of 9% even if sticky loans, or NPAs, were to more than double. Addressing a seminar at the the London Business School on Thursday, RBI deputy governor Rakesh Mohan […]
