The recent legislative changes for faster recovery of NPAs are most welcome, but actual results on the ground will depend on early resolution of potential conflict between what is legally possible and what is practical, reasonable and feasible. We also need to cover considerable ground in developing robust internal control systems, management information systems and early warning triggers.
These are going to become prerequisites in the evolution of prudential norms envisaged over the medium term. We have to redouble our efforts to adapt to the advances in technology which are changing the contours of financial intermediation worldwide. Unless we catch up, the technology lag could widen with adverse implications for efficiency and costs.