Revised framework to deal with NPA: Part 1

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On April 18, 2018 , N. S. Vishwanathan, Deputy Governor, Reserve Bank of India delivered a speech at National Institute of Bank Management, Pune. His title of speech was “It is not Business as Usual for Lenders and Borrowers” . in his speech he has talked about the new circular of February 12, 2018 (Resolution of Stressed Assets – Revised Framework). He answered why this framework is required and answered many of criticism about this circular.

But before that he has talked about the reasons behind substantial increase in NPA after March 2015. How AQR and CRILC helped in recognizing the true asset quality. In the following video part of this speech has been discussed. Rest of speech will be discussed in different post.

On basis of above partial speech ( 1st 6 paragraph of speech) you should able to answer following questions.

Questions

  1. Who is  N. S. Vishwanathan ?
  2. What is difference between Stressed Assets and Non-Performing Assets?
  3. What is NPA as on Dec 2017?
  4. CRILC /AQR is  stand for what?
  5. When was the CRILC framework introduced
  6. CRILC data is accessible by whom?

Descriptive

  1. Why after March 2015 at once the NPA started to increase at high rate?
  2. What is AQR? How does it help in recognising true quality of Assets
  3. What is CRILC? What is its purpose? How does it help banking system?
  4. What is the exposure limit of bank  to the borrower for not to be registered in CRILC

You are expected to answer in comment section.

In case of any doubt you may ask the question in comment section.