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3.2 Banking Issue - Coggle Diagram

- - - - appeal against If individual/partnership firm -> DRT -> DRAT of SAFAESI Act + If Company -> NCLT -> NCLAT of Companies Act
  - - - Borrower propose resolution plan(<=120D) b4 approaching NCLT
        
        Public auction not conducted but Swiss Challenge allowed
  - - - selects IP Agencies(presently 3) -> ICAI, ICSI(make CS), Inst of Cost Accountant -> IP
        
        also selects Information Utility Org to maintain borrower's database; 2017- NeSL: National E-Governance Services Ltd (owned by consortium of SBI, LIC etc.) was 1st to get; compulsory for lenders to share data with IU
  - - - 2Y Graduate Insolvency Programme -> IP, otherwise 10Y exp
  - - - no law at present, make law using UNCITRAL as ref
- - - - interviews & selects top officials for PSBs, Public FIs
        
        2022, Delhi HC - BBB can't appoint Public Insurance company(conflict with other laws)
        
        BBB replaced with new body Financial Services Institutions Bureau(FSIB)
- - - - Structured Financial Messaging System (SFMS)
        
        Inter & Intra Banks within India
    - - Society for Worldwide Interbank financial telecommunication (SWIFT)
        
        Inter & Intra Banks with diff countries
        
        Letter of Undertaking/Letter of Credit issued to Nirav Modi by PNB Managers via SWIFT which wasn't integrated with Core Banking Solution and hence scam happen
- - - - ES recommended Digital Public Credit Registry(PCR)
  - - - concept by G20 & its Financial Stability Board
        
        LEI’s Indian agent: Clearing Corporation of India
- - - - can't pay
        
        Teaser Loan - rate inc with time -> reason of subprime crisis
    - - Over borrowed, Debt/Equity = High
    - - can pay
    - - weak bank -> loan to subprime/overleveraged
  - - - remove from bank's balance sheet
    - - loan of 0/no value declared by RBI/Bank
    - - NET NPA = Gross NPA - Provisioning
        
        Industry > Agri > Service > Personal Loans
  - - - Balance sheet of large companies & PSBs becomes weak -> “Twin balance sheet syndrom"
- - - - appeal in Debt Recovery Tribunals
        
        if unsuccessful, pay atleast 50% and higher appeal in Debt Recovery Appellate Tribunal