New Delhi: The finance ministry has issued a uniform staff accountability framework for non-performing assets (NPAs) accounts up to Rs 50 crore to protect those making legitimate business decisions. These instructions will take effect on April 1, 2022, for accounts that become NPAs in the next financial year. The Indian Banks' Association (IBA) said the Department of Financial Services (DFS), which is part of the finance ministry, "advised broad guidelines to be adopted by all public sector banks (PSBs) on 'Staff Accountability Framework for NPA Accounts up to Rs 50 crore' (Other than Fraud Cases)" in an order dated October 29.

It has been recommended that banks change their employee responsibility policies based on these broad recommendations and design procedures with the agreement of their respective boards, according to the report. As a crucial stakeholder in the framework, the IBA was involved in the process from the start. These guidelines will allay fears that bankers will be prosecuted if a legitimate commercial choice goes awry. It will also assist bankers in making lending decisions more quickly, so supporting the economy.

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