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<h1>Loan policy requirements require banks to maintain board vetted lending and recovery procedures to limit non performing assets.</h1> Regulatory guidance requires banks to maintain documented loan policy and loan recovery policy vetted by their Boards, and places primary responsibility for follow up on lending with the individual banks. The RBI advises strengthened credit appraisal and post credit monitoring, endorses varied bank level recovery procedures where accounts are classified as NPAs, and conducts inspections that examine the quality of advances portfolios.