The Reserve Bank of India (RBI) has taken several measures to tackle the issue of Non-Performing Assets (NPAs) in the banking sector. Here are some of the key steps:

1. **Asset Quality Review (AQR)**: In 2015, the RBI conducted an AQR to identify the exact amount of bad loans in the banking system. This led to a sharp rise in the recognition of NPAs.

2. **Insolvency and Bankruptcy Code (IBC)**: The RBI identified 12 large accounts responsible for 25% of the NPAs in the banking system and referred them for resolution under the IBC. This was followed by another list of 28 accounts.

3. **Prompt Corrective Action (PCA) Framework**: The RBI has put several banks under the PCA framework, which imposes lending restrictions on banks with high NPAs and low capital adequacy ratios.

4. **Restructuring Schemes**: The RBI introduced several restructuring schemes like Corporate Debt Restructuring (CDR), Strategic Debt Restructuring (SDR), and Scheme for Sustainable Structuring of Stressed Assets (S4A). However, these were later withdrawn and a new restructuring scheme was introduced in 2020 due to the COVID-19 pandemic.

5. **Stressed Asset Central Repository (SACR)**: The RBI has proposed the creation of a SACR to collect data on large borrowers from banks and financial institutions.

6. **Prudential norms**: The RBI has tightened the prudential norms for banks, which has led to early recognition of NPAs.

7. **Resolution of Stressed Assets – Revised Framework**: In 2018, the RBI issued a revised framework for resolution of stressed assets which replaced all the earlier restructuring schemes.

8. **Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002**: This act allows banks and financial institutions to auction properties (residential and commercial) when borrowers fail to repay their loans.

9. **Debt Recovery Tribunals (DRTs)**: The RBI has established DRTs to facilitate the recovery of NPAs.

10. **Change in NPA Recognition Norms**: The RBI changed the NPA recognition norms from 180 days to 90 days, which led to early detection of NPAs.

These are some of the key measures taken by the RBI to tackle the issue of NPAs in the banking sector.

Question

The Reserve Bank of India (RBI) has taken several measures to tackle the issue of Non-Performing Assets (NPAs) in the banking sector. Here are some of the key steps:

1. **Asset Quality Review (AQR)**: In 2015, the RBI conducted an AQR to identify the exact amount of bad loans in the banking system. This led to a sharp rise in the recognition of NPAs.

2. **Insolvency and Bankruptcy Code (IBC)**: The RBI identified 12 large accounts responsible for 25% of the NPAs in the banking system and referred them for resolution under the IBC. This was followed by another list of 28 accounts.

3. **Prompt Corrective Action (PCA) Framework**: The RBI has put several banks under the PCA framework, which imposes lending restrictions on banks with high NPAs and low capital adequacy ratios.

4. **Restructuring Schemes**: The RBI introduced several restructuring schemes like Corporate Debt Restructuring (CDR), Strategic Debt Restructuring (SDR), and Scheme for Sustainable Structuring of Stressed Assets (S4A). However, these were later withdrawn and a new restructuring scheme was introduced in 2020 due to the COVID-19 pandemic.

5. **Stressed Asset Central Repository (SACR)**: The RBI has proposed the creation of a SACR to collect data on large borrowers from banks and financial institutions.

6. **Prudential norms**: The RBI has tightened the prudential norms for banks, which has led to early recognition of NPAs.

7. **Resolution of Stressed Assets – Revised Framework**: In 2018, the RBI issued a revised framework for resolution of stressed assets which replaced all the earlier restructuring schemes.

8. **Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002**: This act allows banks and financial institutions to auction properties (residential and commercial) when borrowers fail to repay their loans.

9. **Debt Recovery Tribunals (DRTs)**: The RBI has established DRTs to facilitate the recovery of NPAs.

10. **Change in NPA Recognition Norms**: The RBI changed the NPA recognition norms from 180 days to 90 days, which led to early detection of NPAs.

These are some of the key measures taken by the RBI to tackle the issue of NPAs in the banking sector.

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