RBI advised banks to adopt IT-based automated system

RBI advised banks to adopt IT-based automated system

Mumbai. Concerned about the number of loans levied by some banks to be calculated and identified according to the rules, the Reserve Bank on Monday said that banks should adopt an automated asset classification and provisioning process through the information technology (IT) based system. The Reserve Bank has stated in a circular that in August 2011, banks are required to identify non-performing assets (NPAs) and prepare relevant data and returns for regulatory reporting and requirements of the bank's own management information system and IT systems. Was advised to install.

The Reserve Bank has said that but it has been observed that many banks have not yet fully automated it in terms of identification of NPAs, confirmation of income, necessary provisions and preparation of relevant returns. The Reserve Bank has now given time till 30 June 2021 to the banks for this work. The central bank has asked banks to update their information technology system so that asset classification can be given uniformity to the automaker. Along with this, the process of computation of necessary provision and confirmation of income can be completed. The circular states that bank investment should also be covered in this system. The Reserve Bank has said that the rules of property classification should be included in the system.