IntroductionIn India, loan recovery is a critical function of banks and financial institutions, aimed at managing and reducing non-performing assets (NPAs). The Reserve Bank of India (RBI) provides comprehensive guidelines that emphasize ethical practices, borrower protection, and transparency in the recovery process. This article explores the key elements of the recovery policy followed by Indian…
IntroductionIn the retail lending landscape, timely repayment of loans is essential for maintaining the financial health of both borrowers and lenders. However, due to various unforeseen circumstances, borrowers may sometimes fail to meet their repayment obligations. This article explores the concept of loan default, its consequences, and how loan rescheduling can serve as a preventive…
With the economy hit by the COVID-19 crisis, banks are now preparing for a possible spike in bad loans. According to experts, bad loans (NPAs) of the banks are expected to rise to 11-11.5% of the total advances by March 2021. In this context of default risk by the COVID induced lockdown continues to exacerbate…
Introduction Retail loans are financial products offered by banks and Non-Banking Financial Companies (NBFCs) to cater to the diverse credit requirements of individual borrowers. These loans serve various purposes, such as purchasing a home or vehicle, funding higher education, managing personal expenditures, or availing credit against gold. Additionally, loans extended to Micro, Small and Medium…
While Artificial Intelligence (AI) offers transformative advantages such as improved operational efficiency, expedited decision-making, and enhanced customer experiences, its adoption in India is accompanied by several significant challenges. To ensure the responsible and effective integration of AI technologies, these concerns must be addressed with careful planning and balanced strategies. 1. Job Displacement AI-driven automation is…
Artificial Intelligence (AI) is revolutionizing the banking and finance industry by driving innovation, enhancing operational efficiency, and improving customer engagement. Its applications are far-reaching—ranging from customer service and fraud detection to investment strategies and regulatory compliance. By leveraging AI technologies, financial institutions can automate complex tasks, extract actionable insights from data, and make more informed…
The artificial intelligence (AI) industry in India is undergoing rapid expansion, fueled by robust government initiatives, increasing investment in AI talent, and a growing range of applications across various sectors. AI MarketIndia’s AI market is anticipated to grow at a compound annual growth rate (CAGR) of 25–35%, reflecting strong momentum in both public and private…
Artificial Intelligence (AI) is rapidly transforming the Indian banking sector, revolutionizing functions ranging from customer service to fraud detection and risk management. With increasing adoption, AI is enabling banks to enhance personalization, drive automation, and improve operational efficiency. Why AI in the Banking Industry? AI empowers banks to stay ahead of technological trends, maintain a…
IntroductionArtificial Intelligence (AI) refers to the development of computer systems capable of performing tasks that typically require human intelligence—such as learning, problem-solving, and decision-making. At its core, AI enables machines to learn from data, adapt to new situations, and make informed predictions, mimicking human cognitive functions. What Constitutes AI?AI encompasses a range of technologies and…
Artificial Intelligence (AI) and automation are closely related yet fundamentally distinct technologies. While automation is primarily concerned with executing repetitive tasks based on pre-defined rules and instructions, AI seeks to emulate human intelligence by enabling systems to learn from data, adapt to changing circumstances, and make independent decisions. The table below outlines the key differences…