As of June 30, 2016, NPA accounts above Rs 50 crore were 2,071 with outstanding amount of 3,88,919 crore, Minister of State for Finance
Santosh Kumar Gangwar said in a written reply to the Rajya Sabha.
"In terms of instructions of RBI, every bank has to have its own recovery policy, including the manner and procedure of write-offs," he said.
Loans are written off after appropriate provisions have been made to take advantage of tax benefits and capital optimisation, he said.
In respect of technical write-offs, RBI has permitted write-offs at the head office level while recovery efforts are still continued at the branch level, he added.
In reply to another question, Gangwar said the government has not ordered any enquiry against any bank for allegedly depositing Re 1 in large number of Jan Dhan accounts purportedly to minimise zero balance account.
As many has 25.45 crore Pradhan Mantri Jan Dhan Yojna (PMJDY) accounts have been opened till November 2.
With a view to increasing banking penetration and promoting financial inclusion and with the main objective of covering all households with at least one bank account per household across the country, PMJDY was formally launched on August 28, 2014.
To another question, Gangwar said NITI Aayog has not moved any proposal to create a bad bank to hold the stresses and non-productive assets and loan recovery of banks.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.