EFFECTIVENESS OF RBI’S PRUDENTIAL NORMS ON NPA REDUCTION: AN ANALYSIS OF POST-2015 REFORMS
AUTHOR – ADV.TEJASWANI PRASADAM, NALSAR UNIVERSITY
BEST CITATION – ADV.TEJASWANI PRASADAM, EFFECTIVENESS OF RBI’S PRUDENTIAL NORMS ON NPA REDUCTION: AN ANALYSIS OF POST-2015 REFORMS, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (1) OF 2026, PG. 423-432, APIS – 3920 – 0001 & ISSN – 2583-2344.
The Reserve Bank of India (RBI Non-Performing Assets (NPAs) represent the main concern for Indian banks, undermining profitability and jeopardizing financial stability.) has systematically strengthened prudential regulations concerning income recognition, asset categorization, and provisioning, particularly post-2015, through initiatives such as the Asset Quality Review (AQR), Prompt Corrective Action (PCA), and updated IRAC requirements. This paper examines the efficacy of these prudential measures in diminishing NPAs and enhancing the lending culture of Indian banks. The study utilizes NPA data, RBI circulars, and case studies from public and private sector banks to ascertain if regulatory reforms have effectively mitigated stressed assets or merely reclassified them into restructured categories. Comparative analyses of international prudential regimes will be examined to underscore optimal methods for enhancing India’s NPA management.