Concerned over the rising number of loan default cases, the Reserve Bank of India today warned lenders against outsourcing their credit processing activities to third-party entities. RBI Deputy Governor S S Mundra said that while the apex bank encourages banks to outsource non-core activities, credit processing is not a non-core activity, but rather a most core activity of a banker. He said if credit processing is outsourced, it could lead to the kind of situation that is being witnessed now, hinting at the mounting bad loans in the banking system. As per the RBI data, the gross non-performing assets of PSU banks stood at 2.6 lakh crore rupees as on December 2014.