Early Warning Signals in Bank Accounts
From the Banking & Legal Wisdom Series by Ashok Kakkar
Early Warning Signals (EWS) are the first indicators of financial stress in a borrower’s bank account. Banks closely monitor these signals to detect potential defaults, fraud risks, and deterioration in creditworthiness — often before an account turns NPA.
In this video, I explain:
• What are Early Warning Signals (EWS)?
• Operational vs Financial warning signs
• Red flags in bank statements and stock statements
• Irregular EMI patterns and cheque returns
• Diversion of funds & sudden turnover decline
• How bankers assess risk internally
• What borrowers must understand to avoid account stress
This discussion is based on practical banking experience in credit appraisal, recovery, and risk assessment.
Whether you are a borrower, banker, CA, law student, or insolvency professional, understanding EWS can help you act before financial damage becomes irreversible.
Ashok Kakkar
Advocate | Insolvency Professional | Former Banker
Legal Wisdom Hub, Chandigarh
🌐 www.legalwisdomhub.in blog.legalwisdomhub.in
📧 [email protected]
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