New Delhi: To protect the people who make Bonafide business decisions, the Ministry of Finance has issued a uniform staff accountability framework for NPA accounts to 50 crore rs.
This guideline must be carried out with the effect of April 1, 2022, for the account of playing non-performing assets (NPA) starting the next financial year.
The Financial Services Department (DFS), under the Ministry of Finance, “Vit the order on October 29 suggested broad guidelines to be adopted by all public sector banks (PSB) about ‘staff accountability framework for NPA accounts to RS 50 Crore’ (other than fraud cases) “, Bank India Association (IBA) said in a statement.
The bank has been advised to revise their staff accountability policies based on this broad guide and frame the procedure with the approval of each board, he said.
Iba, became the main stakeholder of the framework, involved in the process from the start.
This guideline will help Quell worry that bankers can be transported for their commercial bonafide decisions wrong.
It will also help bankers to make credit decisions faster and help support the economy.
Emphasizing that new guidelines will definitely increase the morale of PSBS employees very, said the bank must complete staff accountability exercises within six months from the date of the NPA classification as NPA.
Furthermore, it was said that depending on the size of the bank’s business, the threshold limit was recommended for supervision of accountability by the head of the Vigilance Officer (CVO).
Past footprint recordings of officials in assessment or sanctions / monitoring will also be given the material of the battery, he added.
“At present, different banks follow different procedures to do staff accountability exercises.
Also, staff accountability exercises are being carried out in connection with all accounts that have turned into NPA.
This approach does not only have a negative impact on moral staff but also places great pressure on.
Source Bank power, “he said.
While the punishment measures need to be taken against the officers having the intention / involvement of Malafide, it is important to ensure that the bonafide error is handled with affection, said Iba.
This adds that there is a need to protect people to make bona fide business decisions in this competitive environment.
In addition, IBA said that at the time of this country it requires economic impulse, credit labor is slow to the industry because the fear of the implications is the problem and the need for urgent addresses.
Banks with council approval they can decide on the threshold of Rs 10 Lakh or Rs 20 Lakh depending on the size of their business for the need to check the aspects of staff accountability, he said.