new guidelines- staff accountability framework For NPA Accounts up to ₹50 crore (other than cases of fraud) – The objective is to protect the commercial decisions taken by bank employees and speedy resolution of vigilance cases keeping in view the past track record of such employees.
With the approval of their board, lenders can set a limit of ₹10 lakh or ₹20 lakh, depending on the size of their business, to examine all aspects of employee accountability.
“Banks have been advised to revise their staff accountability policies based on these broad guidelines and formulate procedures with the approval of respective boards.” Indian Banks Association said in a statement.
guidelines will be implemented April 2022 for bad accounts on or after 1st April of that year.
IBA At present, banks are following various procedures to conduct accountability of employees.
“Furthermore, an exercise of accountability of employees is being undertaken in respect of all accounts which turn into NPAs. This approach not only adversely affects the morale of the employees, but also puts a huge strain on the resources of the bank. ”
The Bankers’ Association said punitive action is needed against officials with malicious intent, but it is necessary to ensure that genuine wrongs are dealt with sympathetically. “There is a need to protect the people making the real business decisions in this competitive environment,” it said. At a time when the country is in need of an economic boost, the fear of industries getting stranded, slow credit delivery is a matter of concern and needs to be addressed urgently.