Survey of Effects of NPA on Indian Banking, NPA Disasters to emphasize the need for technology-enabled NPA Management

Abstract

This paper is aimed at examining Non-Performing Assets which are also known as bad asset. NPAs are indicators of the inhibitions in the progress of the nation’s economy and need to be closely monitored. The literary search of the national case study shows very few works done on the monitoring of the NPAs, their identifications, listing and recovery of the losses. However, literature shows the extents of catastrophes caused by NPA mismanagement in Indian banking domain. There seems to be a need to create a technically leveraged automated solution for recognizing NPAs and a trusted platform for its recovery. This can be done in a trusted manner with the help of Blockchain-based immutable ledger and Smart Contracts for enforcing the business constraints within regulations. In this work, we investigate the use of Ethereum blockchain to create a bidding platform for the sale of NPA assets. This work may catalyze the development of a product which will give future insights into the analysis of NPA, their recognition and possible trustworthy solutions to platforms for the recovery of losses in an efficient, transparent, and cost-effective manner using advanced technologies.