Source: Indian Express Context: Recently, the Reserve Bank of India (RBI) Governor raised red flags over banks adopting innovative methods for evergreening of loans – covering up the real status of stressed loans of corporates. About Evergreening of loans: Evergreening of loans refers to a practice where banks or lenders provide additional funds or …
GS Paper 3 Syllabus: Indian Economy and issues relating to Planning, Mobilization of Resources Source: IE Direction: The article highlights why the number of stressed accounts reported to Lok Adalats by banks increased dramatically in 2021-22 and contains explanatory infographics on Lok Adalats and NPAs. Context: In 2021-22, the number of non-performing …
Continue reading “Why has loan recovery via Lok Adalat jumped four-fold?”
InstaLinks : help you think beyond the issue but relevant to the issue from UPSC prelims and Mains exam point of view. These linkages provided in this ‘hint’ format help you frame possible questions in your mind that might arise(or an examiner might imagine) from each current event. InstaLinks also connect every issue to …
Continue reading “[Mission 2023] INSIGHTS DAILY CURRENT AFFAIRS + PIB SUMMARY 14 December 2022”
Topic: Government Budgeting. 5. Enumerate the steps taken so far to expedite and enable resolution of NPAs in India. Critically analyse the potential of National Asset Reconstruction Company Ltd (NARCL) as the “Bad Bank” in addressing the issue of NPAs. (250 words) Difficulty level: Moderate Reference: The Hindu Why the question: The Union Cabinet has …
Non-performing Assets (NPAs) INTRODUCTION In the last article on “Understanding the banking system“, we had discussed the Basel norms. We learnt what Basel norms are and why they hold such importance for the Indian banking system. Then we understood the challenges the banks will have to face in implementing them. Further, we suggested a …
Continue reading “Banking System in India – Non Performing Assets”
