Expedite NARCL's onboarding of bad loans, focus on preventing frauds
- The Finance Ministry urges PSBs to expedite the acquisition of stressed accounts by the National Asset Reconstruction Company (NARCL).
- Emphasis on regular meetings between NARCL and banks to facilitate swift on-boarding of stressed accounts.
Mobilisation of Deposits and Innovation
- The Finance Minister emphasises the importance of mobilising deposits for PSBs.
- innovation and attractive deposit schemes to enhance the deposit base, enabling increased credit extension was encouraged
Responsible Lending Practices
- The Finance Minister highlights the impact of willful defaults on the financial health of lenders and credit flow in the economy.
- Urges PSBs to adopt responsible lending practices, enhanced due diligence before loan disbursal, and take swift legal action in cases of willful default.
Legal Action and Performance Reviews
- Call for performance reviews of lawyers representing PSBs to ensure better outcomes in legal cases against defaulters.
- Instructions to take strict administrative action against conniving officials involved in fraud and willful defaults.
Prelims Takeaway
- National Asset Reconstruction Company
- PSB