(i) The Reserve Bank of India’s (RBI’s) new framework for the resolution of stressed assets makes it mandatory to report non-performing accounts above Rs.5 crore on a weekly basis. This will make tracking easier.


(ii) It will be important for the banking system not to become part of an excessive build-up of leverage in the corporate sector.


(iii) Corporate governance:-


Acceptance of the Kotak committee recommendations will help improve the level of corporate governance.


PJ Nayak committee on corporate governance suggested that government banks should be brought under the Companies Act rather than the Bank Nationalisation Act as that would allow them to improve their performance and create good governance structure at the board level, and yet meet objectives of nationalisation.


(iv) Continued efforts to strengthen the framework to protect the interest of minority shareholders will push managements in the corporate sector to take more prudent decisions.


(v) Role and function of RBI requires reform, so as to focus RBI upon its two deliverables: Price stability, and soundness of banks.


(vi) Bring more financing to healthy firms.


(vii) Use of blockchain technology can also be adopted as will not only reduce the time for transactions but also improve the database management and each and every transaction can be traced.


(viii) Restructured accounts treated as non performing and technical write offs where Banks remove NPA’S from their balance sheets, should be permanently dispensed with.


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