The Reserve Bank of India (RBI) is working on revising the framework for resolution of stressed assets, including providing additional 60 days to borrowers to repay dues, as part of efforts to mitigate hardships faced by genuine businesses, sources said.
Against the backdrop of the Supreme Court quashing an RBI circular, issued on February 12, 2018, a revised set of rules is under works and would be released soon, they added. Under the RBI norms, an account is classified as a Non Performing Asset (NPA) if it is not serviced for 90 days.
The February 12 circular had mandated banks to refer an NPA account for insolvency proceedings in case a resolution is not found within 180 days.
This was for accounts where the outstanding dues was at least Rs 2,000 crore. Earlier this month, the Supreme Court quashed the circular and termed it as ultra vires. Read More