The Chairman of the Sashakt Committee has said the new RBI direction making the Intercreditor Agreement (ICA) framework mandatory is a move in the right direction for resolution of non-performing assets (NPAs or bad loans). The Reserve Bank of India(RBI) has issued a revised prudential framework for resolution of stressed assets.The revised circular was issued… Continue reading Sashakt panel hails RBI circular making ICA mandatory
Tag: FEBRUARY 12 circular
RBI revises stressed asset resolution norms
The Reserve Bank of India(RBI) has issued a revised prudential framework for resolution of stressed assets. This revised circular was issued after Supreme Court had declared the RBI’s February 12 circular on the resolution of stressed loans as unconstitutional. This framework will apply to accounts worth Rs 2,000 crore and above but from January 1,2020… Continue reading RBI revises stressed asset resolution norms
Bad debt norms:RBI to seek EC nod
The Reserve Bank of India (RBI) has decided to reach out to the Election Commission (EC) before releasing its new circular for banks. The new circular would replace its February 12 circular that Supreme Court had disallowed earlier.The Model Code of conduct specifically exempted the conduct of monetary policy which is crucial part of the… Continue reading Bad debt norms:RBI to seek EC nod
Stressed assets circular to be revised soon
The RBI governor has said that Reserve Bank of India (RBI) will issue a revised circular for resolution of stressed assets following the Supreme Court verdict striking down its February 12,2018 circular as ultra vires which means that the RBI had gone beyond its powers in issuing the circular. The Supreme Court had said that… Continue reading Stressed assets circular to be revised soon
SC holds ultra vires RBI’s February 12 circular mandating insolvency proceedings
The Supreme Court has struck down the Reserve Bank of India’s February 12 circular that dealt with resolution of stressed assets in the economy.The Supreme Court has held the February 12 circular ultra vires as a whole which means the RBI had gone beyond its powers in issuing the circular.Earlier,the apex Court had stayed the… Continue reading SC holds ultra vires RBI’s February 12 circular mandating insolvency proceedings
Borrower behaviour will deteriorate
According to analysts,Supreme Court judgment striking down the Reserve Bank of India’s February 12 circular that dealt with the resolution of stressed assets will lead to deterioration of borrower behaviour and increase delays and litigation. On 12th February 2018,RBI had put out a circular on classification of non-performing assets that required (a)Banks to stipulate a… Continue reading Borrower behaviour will deteriorate
Credit negative for banks, says Moody’s
According to credit rating agency Moody,Supreme Court’s decision to strike down the February 12,2018 circular of the Reserve Bank of India (RBI) will be credit negative for Indian banks. They said that the circular had significantly tightened stressed loan recognition and resolution for large borrowers.But,with the Supreme court order,resolution of stressed loans impacted by the… Continue reading Credit negative for banks, says Moody’s
RBI order on defaulters lacked govt. nod, says SC
The Supreme Court has struck down the Reserve Bank of India’s Feb. 12 circular on the grounds that the regulator can give directions to banks on stressed assets only upon the central government’s authorisation and in case of a specific default. Several companies in the power,sugar,fertiliser and infrastructure sectors objected to the circular’s one size… Continue reading RBI order on defaulters lacked govt. nod, says SC
RBI says there is no change of stance on February 12 circular
The Reserve Bank of India has clarified that there is no change in its stand with regard to February 12 circular on stressed assets recognition and resolution. In February 2018,RBI had put out a circular on classification of non-performing assets that required banks to (a)stipulates a one-day default rule on term loans.A borrower missing repayment… Continue reading RBI says there is no change of stance on February 12 circular
