Non performing asset (NPA) and bad loans are two major problems in front of the banking industry in India from ages. There have been several measures implemented to keep it under control, but hardly any effect has been visible.
Still, npa account settlement is a major bottleneck in the financial world. Recently, an ordinance was passed to amend the Banking Regulation Act so that RBI gets further empowerment to manage the same.
What are the new amendments?
As mentioned earlier, npa in india has been a pain point; experts always felt the need of having stringent regulations to control it.
In the latest amendment, the central bank gets entitlement to issue directions to a banking company to initiate the process of insolvency resolution if the default falls under the provisions of IBC (Insolvency and Bankruptcy Code).
Also, the central bank is supposed to issue guidelines and directions to the banking companies on a timely basis to resolve the stressed assets.
Experts feel that these guidelines will greatly help in npa management. Banks will be able to save money from going into bad debts.
NPA figures are dropping, but still a lot to be done
Though NPA statistics shows that the trend is declining, still a long way to go as far as complete npa resolution is concerned. It is still one of the major issues prevailing in the Indian Financial scenario.
If you are facing the problem of your business going in the state of NPA, then it is a high time to call the best npa consultant in Mumbai. Yes, it is a complex issue, and you can’t cope up with it unless there is somebody expert to help.
As banks are forced to take large haircuts in view of the increasing stressed assets, they look forward hiring seasoned financial consultants in Mumbai. These consultants know the ways and means of keeping the nonperforming assets within the permissible limits.
As bad debt and NPA brings down, banks and financial institutions can improve their financial strength. It is good from the perspective of client and banks both.
If you feel the need of assigning a seasoned NPA consultant, then make sure you hire the best. Experience makes a remarkable difference since it is a specialized niche.