A specific type of write-off where a bank removes an NPA from its books at the branch level (for balance sheet presentation) but retains the legal right to recover the debt, which is tracked off-balance-sheet. Distinguished from a full write-off where recovery rights may be more limited. RBI guidelines permit technical write-offs subject to provisions being made. Recoveries from technically written-off accounts are recognised as income.
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Defined by Advocate Subodh Bajpai, Senior Partner, Unified Chambers and Associates