The Reserve Bank of India was not considering extending the bad loan or non - performing assets (NPAs) classification window beyond 90 days, parliament was told on Tuesday.
"Reserve Bank of India has informed that it is not examining any proposal on extending the NPA classification norms from the current 90 - day window to help small and medium enterprises, " Minister of State for Finance Santosh Kumar Gangwar told the Rajya Sabha in a written reply.
"The prudential norms are one of the building blocks for financial soundness of Indian banks and any deviation would render the banking system weaker.
Further, any delay in recognition of deterioration in asset quality removes pressure on the banks to deal promptly with the problem, " he said.
The extant prudential NPA norms were brought in after extensive consultations and were based on the report of the Committee on Banking Sector Reforms, chaired by M. Narasimham, he added.
Hello EnglishHello English
