{"id":36113,"date":"2018-11-01T13:37:17","date_gmt":"2018-11-01T08:07:17","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=36113"},"modified":"2018-11-01T13:37:17","modified_gmt":"2018-11-01T08:07:17","slug":"rbi-push-to-resolve-rs-8-lakh-cr-bad-loans","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rbi-push-to-resolve-rs-8-lakh-cr-bad-loans\/","title":{"rendered":"\u2018RBI push to resolve Rs. 8 lakh cr. bad loans\u2019:"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/todays-paper\/tp-business\/rbi-push-to-resolve-rs-8-lakh-cr-bad-loans\/article19291267.ece\"><span style=\"font-weight: 400;\">\u2018RBI push to resolve Rs. 8 lakh cr. bad loans\u2019<\/span><\/a><span style=\"font-weight: 400;\">:<\/span><\/p>\n<p>(NPA of Rs 8 lakh crore to end by March 2019)<\/p>\n<p><b>Context:<\/b> <span style=\"font-weight: 400;\">Industry body Assocham said that the Banking Regulation (Amendment ) Ordinance has empowered the Reserve Bank of India (RBI) to take up \u201c bad loans\u201d worth about Rs 8 lakh crore for resolution by March 2019.<\/span> <b><\/b><\/p>\n<p><b>Introduction:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">According to Assocham the move <\/span><span style=\"font-weight: 400;\">has the potential to bring down the non-performing asset (NPA) levels and &#8220;significantly improve&#8221; the financial health of banks.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">NPAs are a big drain on the financial health of banks especially public sector banks (PSBs).<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The government gave wide-ranging legislative powers to the Reserve Bank of India to issue directions to lenders to initiate insolvency proceedings for the recovery of bad loans that have reached unacceptably high level.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">After the notification of the ordinance amending the Banking Resolution Act 1949, the RBI eased the decision-making process in the Joint Lender\u2019s Forum (JLF) and Corrective Action Plan (CAP) under the \u201cFramework for Revitalising Distressed Assets in the Economy.\u2019<\/span><\/li>\n<\/ul>\n<p><b>Highlights:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The resolution of NPA would be enabled by a combination of several factors including a turnaround in the economic cycle and some resolute steps by the government and RBI to fix the issue, the report stressed.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Assocham study titled &#8216;NPAs Resolution: Light at the end of tunnel by March 2019&#8217; said<\/span><span style=\"font-weight: 400;\"> \u201c<\/span><span style=\"font-weight: 400;\">So, it should be safe to assume that the non-performing assets (NPAs) mess would largely be resolved by the first quarter of financial year 2019-20,\u201d<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Although entire NPAs could be put on the altar of Insolvency and Bankruptcy Code (IBC) resolution mechanism, it has to be seen how much and how fast these bad loans actually go out from the balance sheets of banks, which at this point of time seem much stressed, the report added.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>\u2018RBI push to resolve Rs. 8 lakh cr. bad loans\u2019: (NPA of Rs 8 lakh crore to end by March 2019) Context: Industry body Assocham said that the Banking Regulation (Amendment ) Ordinance has empowered the Reserve Bank of India (RBI) to take up \u201c bad loans\u201d worth about Rs 8 lakh crore for resolution&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/rbi-push-to-resolve-rs-8-lakh-cr-bad-loans\/\">Continue reading <span class=\"screen-reader-text\">\u2018RBI push to resolve Rs. 8 lakh cr. bad loans\u2019:<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-36113","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700791968,"cached_date":1704946758},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/36113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=36113"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/36113\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=36113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=36113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=36113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}