Banking · Back Office Operations

Identify the correct statement regarding the back office's role in the management of non-performing assets (NPAs) and the subsequent recovery process in a public sector bank. Statement 1: The back office is responsible for the automated generation of notices under the SARFAESI Act 2002 once a loan account is flagged as an NPA in the Core Banking Solution based on the 90-day overdue norm. Statement 2: While the front office handles the physical negotiation with the borrower, the back office maintains the record of security valuation, ensures mortgage registration with CERSAI, and updates provisioning requirements as per RBI's IRAC norms. Statement 3: The back office facilitates the legal department by providing the certified statement of account under the Bankers' Books Evidence Act 1891, essential for filing suits in the Debt Recovery Tribunal (DRT).