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What is RBI Prudential Norms Overview about?

Prudential norms are guidelines issued by the Reserve Bank of India to ensure banks properly classify, provision for, and recognize income from troubled assets like non-performing loans. Key aspects of prudential norms include classifying assets as sub-standard, doubtful or loss based on delinquency. Banks must set aside provisions for potential losses at rates from 15-100% depending on asset classification. Income from non-performing assets can only be recognized when received rather than accrued, to accur

Author

Arani Karthik

Language

EN