<h1>Govt Directs Public Sector Banks to Boost Loan Recovery, Manage NPAs with New Systems and Committees by 2012.</h1> The government has advised Public Sector Banks (PSBs) to implement several initiatives to enhance loan recovery and manage Non-Performing Assets (NPAs). These measures include appointing Nodal Officers for recovery, conducting special recovery drives, implementing early warning systems, and replacing post-dated cheques with the Electronic Clearance System. PSBs are also directed to form a Board Level Committee for recovery monitoring. Additionally, banks must establish an effective information-sharing mechanism by December 2012, with new loan sanctions contingent on obtaining necessary information from January 2013. Non-compliance may result in penalties. This was communicated by the Minister of State for Finance in a Rajya Sabha session.