New NPA Policy

New NPA Policy

NPAs in Banks amounting to over 6 lakh crores, would soon get reduced with the new policy being put in place, which expects President’s clearance.

What is coming up?

  • The frame work has to go ahead with an amendment in the Banking Regulations Act.
  • This means Reserve Bank of India and its committees will be given more power to take a call on deadly assets portfolio of banks.
  • Section 35 of the BR Act would provide RBI with more powers to give instructions to banks.


  • This means that the stressed assets if are put on blocks will be offered to state owned large cash rich companies, who will be encouraged to buy the assets on auction.
  • This would pave way for further revival in the economy in the coming days.
  • Also, the NPA menace daunting the banking industry is expected to get resolved in the coming 2- 3 years.

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