The banks should take certain measures in reducing the problem of the Non-performing measure such as conducting recovery camps, the debt recovery, the adjustment of the loan rates, the interest free credits as well as the genuine credit check. Among all these measure the most effective measure which had some what reduced the problem of the Non-performing assets are the debt recovery tribunals as well as the recovery camps which are conducted by the banks.

Recovery Camps held by the banks

The banks and financial institutions should conduct some recovery camps in order to overcome the problem of the non performing assets as well as to recover the pending loans from the borrowers. This recovery camps should in each and every place where there is a problem of the non-performing assets. This recovery camp should be designed with an efficient plan and should include the entire aspects related to the banks and financial institutions. The banks and financial institutions should be able to explain the actual problem of the non performing asset to the customers.

The banks should explain the procedure and steps before and after getting the loans. They should make the customers to clearly understand the problem of the non performing assets in such a way that if they do not pay the loan amount in time, it will affect the economical status of the bank and they cannot even grant the loans to the other customers who are in need and they should understand that if others doesn’t pay the loan amount in time they would have not get the loan amount.

The special type of awareness should be created to the customers so that they should be able to understand the total problem of the non-performing assets. In this camp the banks and the other financial institutions should even specify the acts related to the banks such as the securitization and reconstruction of the financial assets as well as the enforcement of the security interest act 2002. And should mention the principles of the legal actions which are been taken on the customers after getting the alert notice from the banks and the financial institutions. They should even clearly explain the recovery process of their banks and the financial institutions and should mention the actions and activities of the recovery agents which are taken on the customers.

Totally the recovery camps should be capable of creating the efficient awareness to the customers about loan procedure within the banks and financial institutions.