As per the Reserve Bank of India (RBI) guidelines, the banks should have a system to effectively monitor 40+ critical early warning signals on the portfolio companies.
Amukha has integrated the RBI and Red Flag Accounts (RFA) alerts in its Early Warning System (EWS). Amukha triggers early warning signals by analyzing external datasets and the bank’s internal data in EWS application.
Amukha’s EWS application identified 200 early warning signals for 196 companies in January 2022 by analyzing news data.
Here, we have highlighted underlying news items showcasing examples of 3 RBI Early Warning Signals:
Alert #1. Raid by Income tax /sales tax/ central excise duty officials:
Atlas Jewellery India Ltd
ED conducts raids at Atlas Jewellery stores in connection with money laundering case
New Indian Express | Jan. 24, 2022
Alert #2. Default in undisputed payment to the statutory bodies:
DCM Ltd
DCM Ltd defaults in payment of interest, the principal amount
PTI | Jan. 1, 2022
Alert #3. Resignation of the key personnel and frequent changes in the management:
Parag Milk Foods Ltd
Parag Milk CFO resigns
Business Standard | Jan. 1, 2022
Amukha EWS application helps the bank to comply with the regulatory and compliance-related guidelines issued by the RBI such as Early Warning Signals. Most importantly, our EWS application helps the banks to maintain a healthy loan portfolio through the identification of distressed companies ahead of time.
To know more about Amukha EWS application, please get in touch with us at info@amukha.com
AMUKHA 