Auto Classification of Assets

Have you taken any loan from the bank and not so prompt in making repayment, then be cautious as the banks have introduced Auto Classification of its advances as per RBI's Directives. Auto classification means the system automatically downgrades/upgrades your account based on your repayment and the repayment terms of the bank. Till now banks were doing it manually and there were chances that the branch did not make your account as Non-Performing Asset even if your loan is overdue for more than 90 days as stipulated by RBI. Now the system automaticlly does the things and hence more transperancy in NPA declaration by the banks. All banks are mandatorily switched to Auto Classification from December 2011.