Banks lack data to move to new NPA framework

Indian banks face challenges in transitioning to the new non-performing asset (NPA) framework due to a lack of comprehensive data. The framework requires banks to adopt new methods to identify and manage NPAs early, but many banks struggle to gather the necessary data for effective implementation. The lack of reliable data on NPAs has made it difficult for banks to assess risks and take preventive measures. This issue has raised concerns among regulators, as early identification of NPAs is crucial for maintaining financial stability and ensuring that banks are not overly exposed to bad loans.