{"id":27500,"date":"2018-10-23T14:27:33","date_gmt":"2018-10-23T08:57:33","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=27500"},"modified":"2018-10-23T14:27:33","modified_gmt":"2018-10-23T08:57:33","slug":"sage-advice","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/sage-advice\/","title":{"rendered":"Sage advice"},"content":{"rendered":"

Sage advice<\/a><\/p>\n

News<\/strong>:<\/p>\n

    \n
  1. Former RBI Governor Raghuram raised concern over high Non Performing Assets (NPA) of the banks.<\/li>\n<\/ol>\n

    Important News:<\/strong><\/p>\n

      \n
    1. According to Raghuram, Government is not taking serious steps to tackle the issue of NPA.<\/li>\n<\/ol>\n

      Factors contributing to high NPA and issues with them:<\/strong><\/p>\n

        \n
      1. MUDRA CREDIT: – Small loans provided to Micro and Small Medium Enterprises.<\/li>\n<\/ol>\n

        Under Pradhan Mantri Mudra Yojana loan of \u20b96.37 lakh crore, which is over 7% of the total outstanding bank credit disbursed to the sector mostly belong to informal sector.<\/p>\n

        Though, these are small loans up to Rs.10 Lakh to each, it builds into large credit over a period of time.<\/p>\n

        Since borrowers mostly belong to informal sector, bank needs to monitor them closely.<\/p>\n

        Rising concern is if Banks have enough manpower to chase and recover the granted loan.<\/p>\n

          \n
        1. Kisan Credit Card: Provide adequate and timely short-term credit needs of farmers during the cropping season.<\/li>\n<\/ol>\n

          Credit provided under Kisan Credit Card also goes to informal sector and hard to recover.<\/p>\n

          Loan waiver scheme further discourages small farmers to pay their loan leading to less recovery by banks.<\/p>\n

            \n
          1. Credit Guarantee Scheme for MSMEs: In which small loan is given to MSMEs and it is run by Small Industrial Development Bank, having the same issues of loan recovery.<\/li>\n
          2. As per RBI recommendation, recognition of bad loan should be the first step in an effort to clean-up NPA.<\/li>\n
          3. And once the Banks are clean, they can further make fresh loans.<\/li>\n
          4. Other Recommendations provided by RaghuramRajan<\/li>\n<\/ol>\n

            Professionalising bank boards with appointments done by an independent Banks Board Bureau.<\/p>\n

            Bring talent from outside banks.<\/p>\n

            Revising compensation structures to attract the best talent.<\/p>\n

            Ensuring that banks are not left without a leader at the top.<\/p>\n

              \n
            1. Finally, he has raised concerns over political parties for their un-justified policies such as Loan waiving schemes.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

              Sage advice News: Former RBI Governor Raghuram raised concern over high Non Performing Assets (NPA) of the banks. Important News: According to Raghuram, Government is not taking serious steps to tackle the issue of NPA. Factors contributing to high NPA and issues with them: MUDRA CREDIT: – Small loans provided to Micro and Small Medium… Continue reading Sage advice<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-27500","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704810465},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/27500","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=27500"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/27500\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=27500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=27500"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=27500"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}