Recently the Finance Ministry has issued Uniform Bank staff norms for Accountability.
These norms have been issued to provide guidance to state-owned banks in adopting a uniform employee accountability framework for non-performing asset (NPA) accounts up to Rs 50 crore (except in cases of fraud).
- Presently, different banks follow different procedures to ensure employee accountability (with respect to NPA accounts).
- These norms will be applicable from April 1, 2022 for those accounts which turn NPA at the beginning of the coming financial year.
- The move is aimed at assisting bankers in deciding on loan restrictions. Also, these norms will help allay the apprehension that bankers may be implicated if their genuine commercial judgment turns out to be wrong.
- These parameters will also help the banker to take quick loan decisions and support the economy.
- Banks may fix an initial limit amount based on the size of their business to need to examine the employee accountability aspect.
- Earlier, the accountability of the employees was ensured in respect of all the accounts turning into NPAs.
- The bank has to ensure accountability of the employees within six months of the account being classified as NPA.
Source – The Hindu