Asset Classification and provision for NPA

(This article  explains the definition of non-performing assets (NPAs), and basis on which accounts are classified into Special Mention Accounts (SMA) /sub-standard Assets, Doubtful assets, and Loss Assets. Income recognition and provisioning requirement are specified in the article.) Internationally income from Non-Performing Assets (NPAs) is not recognized on accrual basis but is booked as income only…

Monetary limit for filing cases in DRT rose up to Rs.20 lakh

The notification  dated  September 6, 2018 of finance ministry, Government of India increased the monetary limit up to Rs.20 lakh for filing loan recovery application in the Debt Recovery Tribunals (DRT) by banks and financial institutions. It is reported that there are 38,376 cases pending in 39 debt recovery tribunals (DRTs) in the country, as…