RBI Releases Prudential Framework For Resolution Of Stressed Loans
  • WebDesk BTVI
  • Jun 07 2019

The RBI issued its revised circular for non performing assets, which replaces the February 12 circular scraping 1 day default rules and makes inter-creditor pact mandatory for all lenders. This circular will issue directions to banks for initiation of insolvency and lenders to initiate a resolution plan before loan default. The resolution plans shall provide for payment not less than liquidation value. The implementation of the resolution plan will take place in 180 days post review period.