New NPA resolution norms soon: RBI |
Reserve Bank of India is in the process of coming out with a revised circular on resolution of stressed assets and may bring it within this week. On April 2, the Supreme Court had quashed the RBI`s stringent, February 12, 2018 circular on resolution of stressed assets as `ultra vires`. RBI Governor Shaktikanta Das has said, "It has taken more time than we anticipated because it involved examining various legal issues and wide-ranging stakeholder consultations." The Feb. 12 circular had directed lenders to refer loan accounts of over Rs 2,000 crore for proceedings under the Insolvency and Bankruptcy Code (IBC) if they were not resolved within 180 days of default. Banks had to treat a company as a defaulter even if it missed the repayment schedule by even a day. The Supreme Court had declared the RBI`s February 12 circular as ultra vires of Section 35AA of the BR Act. The circular revoked all previous restructuring schemes, including corporate debt restructuring scheme, strategic debt restructuring scheme and scheme for sustainable structuring of stressed assets approved by the RBI and allowed borrowers a window of 180 days to resolve their stressed accounts.
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