RBI asks banks to upgrade system to auto identify NPAs

The Reserve Bank of India, asked banks to upgrade their systems by June 30, 2021, for identification of non-performing assets (NPA) and calculation of provisioning.

The central bank noted that many banks are still not yet fully automated and are resorting to manual identification of NPAs. All borrowal accounts, including temporary overdrafts, irrespective of size, sector or types of limits, shall be covered in the automated IT-based system (system) for asset classification, upgradation, and provisioning processes.