For this to be effective there must be a system of identifying the weakness in accounts at an early stage. Banks should put in place an ‘Early Alert’ system that captures early warning signals in respect of accounts showing first signs of  2  BIS central bankers’ speeches  weakness.
This would help the banks to take remedial measures and prevent the account from becoming NPA. Banks may restructure / reschedule the accounts of viable entities and assist the entity to tide over the temporary difficulties faced by them. 11. Once a weak account is identified, the bank needs to consider various corrective actions. One of the corrective options is restructuring.