Business Today
Loading...

RBI will issue fresh circular on bad debt resolution: Governor Shaktikanta Das

'RBI will take necessary steps including issuance of a revised circular as may be necessary for expeditious and effective resolution of stressed assets', said Das

twitter-logoReuters | April 4, 2019 | Updated 14:51 IST
RBI will issue fresh circular on bad debt resolution: Governor Shaktikanta Das

The Reserve Bank of India (RBI) said on Thursday it would issue a revised circular on the resolution of stressed assets after the Supreme Court this week struck down its earlier directive that imposed tougher norms on banks dealing with non-performing loans.

The Supreme Court had said on Tuesday that the RBI had acted beyond its authority when it asked banks to drag a defaulter to an insolvency process if they are not able to find a resolution to a company's debt within six months.

"The RBI's powers are not under doubt," Governor Shaktikanta Das said in Mumbai, while speaking to the press after announcing a cut in the RBI's benchmark interest rate.

The "RBI will take necessary steps including issuance of a revised circular as may be necessary for expeditious and effective resolution of stressed assets," he said, adding the RBI stands committed to maintaining and enhancing the momentum on the resolution of stressed assets and an adherence to credit discipline.

Also read: Overall credit growth to MSMEs remains neutral, says RBI Governor Shaktikanta Das

Also read: RBI policy LIVE updates: RBI cuts repo rate by 25 basis points; cuts FY20 GDP growth forecast to 7.2%

Also read: RBI repo rate cut: How much will your home loan EMIs reduce?

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close