Recovery Continuous and focused follow-up daily is the underlying principle for good recovery and also for identifying genuine problems of the borrower units so that timely assistance can be extended to correct any temporary mismatch of the cash flow/ review of repayment schedule etc.  The endeavor should be to prevent the asset from becoming NPA rather than applying remedial measures at the post NPA stage.  Timely restructuring/rehabilitation in deserving cases should be ensured.  The bank shall introduce MIS to monitor overdue and rephrased accounts closely.  Bank may opt for One Time Settlement where chances of entire recovery are remote/time-consuming.  Bank may consider the Sale of NPA assets to ARCs/Banks/FIs. General consistency in approach is expected while dealing with Willful defaulters. The approach for recovery should be practical and non-prejudiced. Fair treatment and persuasion are the basic principles of the recovery mechanism. Enforcement of security be undertaken only where restructure / rehabilitation has failed or is impossible The recovery mechanisms for retail products LAP, Micro Housing Loans, Home improvement loans, loan against term deposits.  The recovery mechanisms for MSMEs will include Rectification & Restructuring and in case these options are seen as not feasible, due recovery.