.........The RBI will set up a Central Repository of Information on Large Credits (CRILC) – an entity to keep track of “large credits”. The RBI’s definition of “large credits” is not really large, as accounts with a fund and non-fund exposure of Rs5 crore, and current accounts with an outstanding balance of Rs1 crore will be covered by the CRILC system. Where an account reaches SMA-2 status, banks and larger NBFCs (systematically important NBFCs) will report the account to CRILC.........
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1 comment:
The suggestion of mr K. Venkataraman, an experienced banker himself deserves immediate consideration by the RBI and the Ministry of Finance who shed tears over the bleeding NPAs in the banking system. Second, there are various types of audits prevalent now: internal audit by the department officials within each institution, vigilance audit; concurrent audit; statutory audit and regular inspections and management audits among the larger banks. Why the CAs who annually audit alone should take the blame when the whole system of audits perpetrate it? How these NPAs originated deserves to be looked at for making corrections instead of making a wild goose chase. In fact banks' due diligence process took a beating with the arm chair and system based lending initiation. Banks would be well advised to go back to the basics to correct the malady instead of aping the western models of credit risk management.
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