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NPA is a much debated issue and Govt. and banks, particularly public sector banks, are highly stressed due to the humongous burden of NPAs. In the present video we are discussing about the definition and the nature of NPAs. But the most important thing is the advice-cum-warning tendered by former Governor RBI Mr. Raghuram G Rajan while deposing before the Estimates Committee of Parliament. He emphasized the need to closely monitor following types of lending else the banking system be prepared for even worse form of NPAs: 1. MUDRA loans, 2. Disbursements through Kisan Credit Card, and 3. Credit Guarantee given to MSME sector by SIDBI. But at the same time Mr. Rajan suggested certain reforms as well to revamp Public Sector Banks. At the end we must differentiate between the causes that create NPAs. Whereas willful defaulters must be dealt with iron hands but Govt in general and Banks in particular must support and facilitate such defaulters who are the victims of circumstances or are having valid reasons for the restructuring of their debt.