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FINANCIAL TERMINOLOGY
What are Non Performing Assets?
Non Performing Assets
(NPAs) are the debts for which the bank has not
received any interest or principal repayment for an extended period of time.
Since no income accrues to the lending institution from these debts, these are classified as NPAs. We can say that NPA refers to loans that are in jeopardy of default. If a
loan instalment is not paid to a bank or financial
institution for three months
continuously, it is considered NPA and the bank records it as NPA in its book
of accounts. NPAs create burden on the financial institutions and hence they are often good dictators of the health of a financial institution.
What is Digital Signature?
The digital counterpart of
the handwritten signature is Digital Signature. Just as a paper document is
authenticated with handwritten signature, digital signature authenticates the
identity of the owner of the document in the digital world. It gives the
assurance about the sender of the document
as also the fact that the document has not been altered. Digital Signature is a
kind of stamp which is very difficult to duplicate
and forge. The Information Technology Act, 2000 requires the use of Digital Signatures
to ensure security and authenticity of all electronically filed documents. Digital Signature certificates (DSC) can be purchased from Certification Agencies (CAs) approved
by the Controller of Certifying Authorities. Currently MTNL CA, TCS, IDBRT,
Safety crypt (Satyam), Code Solutions, NIC, and e-Mud are the authorised
Certification Agencies for individuals in India. The
Digital Signature Certificates (DSCs) generally have a
validity of one year or two years and are legally admissible in a court of law.
