Credit Monitoring Arrangement

The study aims to assess the different ways in which commercial banks are monitoring today the compliance of all the terms under which advances have been disbursed , study the efficacy of such measures and come up with considered views on what further steps could be taken in this area for making the system more robust and workable .

Executive Summary
Monitoring Arrangement or CMA , is an important responsibility and therefore a key function of commercial banks given the spate of NPAs and the various regulations around it . The banking industry in India has undergone a sea change over the last 30 years. From a wholly nationalized and inefficient set-up ( it was private prior to nationalization !! ) the banking sector has grown into one of the few areas where Indian firms pose tough challenge to the rest of the world ( how ?). Today banks like the ICICI have truly become what is a global bank. In this project I ( avoid I ) will show how the Credit Monitoring Arrangement of Indian banks have undergone changes since the 1980s. In this project we shall be seeing what was the major hurdles for expansion of credit policy in the 1980s and how has the Indian banking industry coped with it. Due to the limitations of time the project has mostly been done using secondary sources of data. This study also aims to determine the factors influencing the Credit Monitoring Arrangement while giving credit. ( Re write not clear or logical !! )