Strategies IN Mind

On Nov 27, 2014, the RBI (Reserve Bank of India) has issued " Guidelines for licensing of Payment Banks in India " & seeks application from the eligible applicants for setting up of Payment Banks. On Feb 04, 2015, RBI releases name of 113 applicants & out of which 41 was for Payment Banks, remaining for small finance banks . And out of 41, only 11 were selected by RBI. They are :- Aditya Birla Nuvo, Airtel M Commerce services, Cholamandalam Distribution Services, Department of Post, FINO Pay Tech, NSDL, Reliance Industries Ltd, Sun Pharma, Paytm, Tech mahindra & Vodafone (m-pesa). Cholamandalam Distribution Services, Sun Pharma, Tech mahindra have surrendered their licenses i.e, they are not operating now. Lets move to check what do you mean by a 'Payment Banks' & some other things to break the ice :- ⊶ What are Payment Banks ? It is a new business model of Bank framed by RBI . It has same features as of the normal bank...

⇛ What is NPA ? As per Reserve Bank of India (RBI),  an  asset , including a  leased asset , becomes  NPA  (non performing asset) when it  ceases to generate income  for the bank. It is a part of "Stressed Assets". Also check NPA & Special Mention Accounts  (in summary) ~ useful in Bank Audits. ⇛ What is Stressed Assets ? Stressed Assets = NPAs + Restructured Loans  + Write off Assets Till May, 2017 total stressed assets in the banking sector stands at more than Rs. 12 lacs crores . ⇛ How NPA ? There are few reasons for a loan which becomes NPA :- Crony Capitalisation :- It is the leniency by bank officials to corporates . You can also understand by this  ~ "the success of every business depends on close relationships between business people & government officials". Delay in Asset Quality Review (AQR). Bank's Board :- The role of bank's board should be assertive in their choic...

As per Reserve Bank of India (RBI),  an asset , including a leased asset , becomes NPA (non performing asset) when it ceases to generate income for the bank. BEFORE 2014 Also, it was defined as  a Credit Facility in respect of which the interest / installment of principal   has remained ' past due ' for a specified period of time. 'Past Due' means amount not been paid within 30 days . And it becomes NPA, if amount not paid within 90 days . FROM & AFTER 2014 As per the new guidelines (26/02/2014) of RBI, before a loan account turns into a NPA, banks are required to identify the stress into the account by creating 3 sub-categories under Special Mention Account (SMA) category . SMA Sub-Categories  # Revitalising Distress  Assets in the economy -- Guidelines on Joint Lender Forum (JLF) & Corrective Action Plan (CAP)