RBI says non-adherence to IRAC norms by banks is a major concern. Photo: Ramesh Pathania/Mint
Mumbai: The Reserve Bank of India (RBI) has expressed concerns over banks not adhering to the regulator’s income recognition and asset classification norms (IRAC) and reporting divergences in bad loan numbers.
According to the central bank, while there may be instances of information asymmetry between the supervisor and other stakeholders, bad loan divergence should not arise from lack of adherence to regulatory guidelines.
“Non-adherence to Income Recognition and Asset Classification (IRAC) norms by banks is a major concern. In this respect, audit function still needs to provide desired level of assurance to all stakeholders, including the Reserve Bank of India,” it said in its FY18 annual…
