Definition
The accounting process by which a bank removes an NPA from its books by treating it as a loss. A write-off does not mean the bank has waived the debt — it is purely an accounting entry. The bank continues to have the legal right to recover the written-off amount. Technical write-offs are used to clean bank balance sheets while recoveries from these accounts are treated as income when received.
Related Terms
NPAOne-Time SettlementProvisioning
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Defined by Advocate Subodh Bajpai, Senior Partner, Unified Chambers and Associates