In order to control the increasing NPAs, the apex bank has come up with some rigorous measures. A list of defaulters was prepared and it was decided that the defaulters won’t be allowed to open current account in any other bank, if an account was non-performing for any bank.
Due to the sharp rise in NPAs from past two years, the RBI and govt. of India are taking some strict measures to control. The central bank has unveiled fresh norms to identify stress in the system at an early stage, and promised incentives to banks for doing so. However, if banks fail to act after stress is detected, they will face accelerated provisioning norms.
According to the reports the NPAs of the banks has increased from 3.3% to 3.9%. A banker stated that all the banks should sell the NPAs to one asset Reconstruction Company, not separately.