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“Prevention is better than cure” is an old dictum which if followed can solve many of the long lingering cases pertaining to the banks and financial institutions. The problem of Non Performing Asset (NPA) is creating a grave situation for both the lenders and the borrowers affecting the economy of the nation. Hence, the emphasis is to prevent the loan accounts becoming NPAs.

The advent of Basel norms applicable globally in the banking sector and the introduction of prudential norms during the Indian banking reforms initiated in the year 1990 along with the dawn of the concept of non-performing assets (NPA) and the enactment of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and The Securitization And Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 , and the latest Insolvency and Bankruptcy Code have changed the entire perceptions of law and practice of banking and acquiring latest knowledge and trends in tackling the ticklish issues of NPA management have become an inevitable necessity for the lenders and borrowers. The already existing Banking Regulation Act, 1949 with its subsequent amendments empowers Reserve Bank of India to exercise control and supervision over banks and financial institutions by giving guidelines through its notifications and circulars which are mandatory for the banks and financial institutions to comply. Possessing mere knowledge alone is not sufficient to produce results. Imparting required knowledge has become the strategic focus to solve problems. In a highly charged environment of NPA resolution, the objective is to train all concerned people to achieve results through undertaking effective workshops. This will not happen unless every concerned people make a personal investment in leadership, in learning, and in development. This is the central concept around building knowledgeable people.

Considering the importance of imparting knowledge regarding the management of NPA, a well thought out training programme has been devised to meet the requirements of resolution of NPA accounts. The following aspects of NPA resolution are included in the training module.

1. The meaning and definition of NPA.

2. Prevention of an account from classifying as NPA.

3. Steps to be taken by the banks and financial institutions and by the borrowers to arrest the trend of the account becoming NPA.

4. In case the accounts becomes NPA, the steps to be taken to take it out of the status of NPA.

5. RBI directions on dealing with NPA accounts.

6. Various judgments of High Courts and the Supreme Court.

7. Various Acts pertaining to recovery of debts.

8. The roles of DRT, DRAT, NCLT and various courts.

9. Educating the bankers.

10. Educating the borrowers.

11. Recovery of debts with a human touch

12. Perpetual self renewal programming to prevent the account from classifying as NPA.

Depending upon the requirements of the participants, the training programme will be designed to empower them to successfully resolve the NPA problems to bring a win-win situation for both the lender and the borrower.

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