For cleaning up the balance sheets of banks, RBI conducted Asset Quality Review (AQR) of banks. What is not correct about AQR?
Typically, Reserve Bank of India (RBI) inspectors check bank books every year as part of its annual financial inspection (AFI) process. However, a special inspection was conducted in 2015-16 in the August-November period. This was named as Asset Quality Review (AQR). This is at the heart of the “deep surgery” prescribed by the RBI Governor Raghuram Rajan as a desperate measure to clean up bank books.