The Govt. of India, in order to keep a latch on fraudulent activities and to prevent diversion of funds, has introduced the ASM (Agency for Specialised Monitoring) Mechanism. Under the ASM, banks will now appoint specialized monitoring agencies to closely track the activities of the debtor (borrowers) including purchase/invoices, actual production vis-à-vis projections, high value transactions/ payments as regards beneficiaries and purpose, cash inflow/ outflow.
ASM will be applicable for all debtors where exposure is above INR 250 Crore.
Protocol with its techno-financial capabilities, is rightly placed to offer a 360 degree overview to the lenders, with regard to their exposure to large borrowers. We can monitor the progress of the implementation/operation of projects on real time basis. Simultaneously, we can monitor the operating and non-operating financial transactions of the debtor, including cash flow monitoring.
