Impact of NPAs on Indian Schedule Commercial Banking Sector and Instruments Initiated by the Central Bank of India Lakshmi T. Vara1, Reddy M. Srinivasa2 1Research Scholar, Department of Management, Sri Venkateswara University, Tirupathi, India 2Professor, Department of Management, Sri Venkateswara University, Tirupathi, India Online published on 9 March, 2017. Abstract As a Part of Economic Growth measurement criteria, GDP of the country can evaluates in different ways. One among that ways is Income approach that evaluate all the sources of Income generating by the Households, firms and Government of India through Land, Labour, Capital and Entrepreneurship. Again Capital form of source of Income can be possible when that country people have the Financial Literacy, means knowledge on availability of Financial Assets, Financial Institutions, Financial Markets as well as Risk inherited in their investments. Somehow banks were succeeded some extent to create financial literacy among the households than other Non Banks and Capital markets. The reason behind the awareness about the banking products for the people is flexibility in deposits and easy loans availability. even the recent decision of Demonetisation and cash less payment encouragements also created more awareness about the banking operations. But still many people are approaching local money lenders for their needs and even many banks are suffering with the problem of Non Performing Assets (NPAs). When banks are lend loan to individuals or companies some time they may not be able to payback or they may not be able to service the loan back. f that situations continues for more than 90 days that loans will be treated by the banks as NPAs. Now Public Sector Banks are suffering badly because of increasing NPAs every year, mean while RBI devices several ways to come out of this problem from more than a decade but not yet resulted in reduction of NPAs. In this paper the Impact of NPAs on Public, Private and foreign sector banks operating in India are taken into consideration for evaluation and also explained the different remedial methods that are considered by Reserve Bank of India with regards to NPAs. Top |