About
What is ASC ?
The Annual Stress Check (ASC) module is a
compliance-driven solution that aligns with
RBI’s guidelines for periodic risk assessment
and
Red Flagging of Accounts (RFA).
ASC generates comprehensive reports that
categorize mortgaged properties as "Positive" or
"Negative" based on predefined risk parameters,
enabling timely corrective actions for high-risk
accounts. By analyzing property status,
transaction history, and compliance with
regulatory requirements, ASC identifies
potential red flags and ensures adherence to
RBI’s Fraud Risk Management Framework. This
module not only simplifies compliance for local
credit teams but also provides actionable
insights for maintaining portfolio health. With
its focus on early risk detection and
mitigation, ASC is an essential tool for
preventing loans from sliding into NPAs.
Challenges
-
Regulatory Non-Compliance:Banks struggle to meet RBI’s mandate
for periodic risk assessments of
mortgaged properties.
-
Manual ReportingLocal credit teams spend significant
time categorizing loans as "Positive" or
"Negative".
-
Delayed Corrective ActionsWithout timely insights, high-risk
loans often slide towards NPAs.
-
Lack of Portfolio Visibility:Banks lack a holistic view of their
lending portfolio, making it difficult
to identify trends or risks.
Solutions
How ASC resolves these challenges:
-
Automated Reporting:Generates instant comprehensive Annual
Stress Check Reports with minimal manual
intervention.
-
Risk Categorization:Classifies loans as "Positive" or
"Negative" based on predefined risk
parameters.
-
Timely Insights:Enables corrective actions for
high-risk accounts before they become
NPAs.
-
Portfolio Analysis:Provides a holistic view of the lending
portfolio, identifying trends and risks.
Benefits:
-
Simplifies compliance with RBI
guidelines.
-
Reduces the administrative burden on
local credit teams.
-
Prevents loans from sliding into NPAs
with proactive risk management.
