Government took this big decision to boost the morale of bank employees

Easy Lending : The Finance Ministry has taken a big decision for the employees of public sector banks to give maximum loans to the people without fear. In order to boost the morale of the employees, the Finance Ministry has issued comprehensive guidelines on accountability of employees for NPA accounts up to Rs 50 crore. Banks have been advised to revise their employee accountability policies based on the new guidelines and seek approval from their respective boards for approving the new procedures. These guidelines will be applicable from April 1, 2022.

Indian Banks Association said in a statement that the Department of Financial Services, Ministry of Finance, in its order dated October 29, has given 50 crore rupees to all public sector banks. Advises adoption of comprehensive guidelines on Employee Accountability Framework for NPA accounts (other than fraud cases) up to Rs.

Will help boost loan growth

Banks have been advised to revise their employee accountability policies based on these guidelines and formulate procedures with the approval of the respective Boards. These guidelines will help to allay the apprehensions of those bankers that they will face problems if any of their decisions go wrong while giving loans. This will not only help the bankers in taking faster lending decisions, but it will also benefit the economy. This step has been taken at a time when the need is felt to promote loan growth in the banking system. Bank NPAs become a big political one, this decision of the Finance Ministry will help in dealing with the fear among bankers in giving loans. According to the new guidelines, it has been asked to complete the process of accountability of employees of banks within 6 months of declaring any account as NPA.

Accountability will be fixed within 6 months

It has been said in the guidelines that within six months of the account becoming NPA (Non Performing Asset), the bank will have to ensure the accountability of the employees. The past track record of the officers will also be taken into account while ensuring accountability. At present, different procedures are adopted to ensure accountability of bank employees. This not only affects the morale of the employees adversely but also affects the functioning of the banks.

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