VOLUME - 6, ISSUE – 2, JULY.TO DEC,2020 ISSN NO. : 2455-4642 (ONLINE)
IDEES –International Multidisciplinary Research Journal
(Peer Reviewed)
A Research Paper
On
Credit Risk Management : A way to financial development of India
By
Poorva Dawar
PhD Scholar,
Pt. J L N I B M, Vikram University, Ujjain, M.P.
Mob. 8319008650
Abstract
RBI has issued in 1997 guidelines on risk management system covering, single risk
management system covering, single risk management committee for integrated management
of risks, portfolio approach to CRM and switch over to appropriate risk modeling and
building of data base. In 2002 banks were advised to prepare for risk based supervision
including effective risk management architecture and adequate internal control process. again
on october 2002,RBI suggested by a guidance note an CRM to use portfolio for scientific risk
analysis and advised banks to upgrade their CRM system to optimize the use of capital . by a
letter dated 29.1.2003 banks were advised to adopt integrated risk management system for a
smooth changeover to the new capital accord. Periodically RBI was initiating structural
parameter changes to bring Indian banking in line with international standards.
Key words: Credit Risk Management, CRM, Credit Risk, Credit System, Financial
development
Introduction
Credit Risk Management (CRM) depicts all significant devices of CRM with connection to
their shortcomings and qualities, wellness to explicit budgetary circumstance and the
viability coordinating credit hazard is fundamental perusing for financiers who face the neo
tremendous difficulties. Sufficient and free progression of bank credit has a confirmed
impact on the development of the area and by implication contributes towards expanded
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