News
2024
U/A 16+
The Government has been proactively supporting the banking ecosystem and taking care of both business and employee welfare to maintain stability, transparency, and growth. Over the past decade, multiple citizen-and-staff-centric reformative initiatives have been taken by the Government in this direction. Following is a brief snapshot of the reforms in banking sector:RBI initiated Asset Quality Review (AQR) in 2015 to identify and address the issue of stress in the banking system, under which, after transparent recognition by banks and withdrawal of the special treatment of restructured loans, stressed accounts were reclassified as Non-Performing Assets (NPAs) and expected losses on stressed loans, not provided for earlier as a result of the special treatment, were provided for, resulting in higher NPAs which peaked in 2018. Higher NPA and necessitated provisioning deeply impacted the financial parameters of banks and impeded their ability to grow and lend to productive sectors of the economy.Show more