SME Times is powered by   
Search News
Just in:   • Sensex ends 135 points lower, Jet ends 32% lower  • Jet stocks sink as investors react to suspension  • Notice to Samsung for not passing GST cut benefit to consumers  • Air India keen on taking 5 grounded Jet Boeings  • US stocks fall as health care shares lag 
Last updated: 15 Apr, 2019  

RBI.9.Thmb.jpg New debt resolution rules after election: Report

RBI.9.jpg
   Top Stories
» Govt suspends LoC trade
» Informal sectors of agrarian India yet to recover: Report
» Cabinet approves extension of duration of New Urea Policy
» Cabinet approves India-Denmark pact on renewable energy
» Three-day Home Expo India 2019 kicks off
SME Times News Bureau | 15 Apr, 2019

The RBI is likely to release its revised stress assets resolution circular after the elections to clear the model code of conduct.

The central bank may need time to have consultations with legal experts, industry and government before bringing the framework out.

This would mean that the widely anticipated RBI circular would not be issued before June. The delay could also halt resolution of several stressed assets.

"After the court judgement, the RBI is extra careful to issue any other circular without proper consultation and vetting. This could result in some delays, but ultimately better regulations would flow," an official source is quoted as saying by a news agency report.

After the Supreme Court’s striking down a February 12, 2018 circular of the RBI that asked banks to initiate insolvency process against companies even if there was a day's delay in payment of dues, it is expected that RBI is likely to adopt a more accommodative approach towards resolution of stressed assets in the new circular.

Sources said the major contention in the controversial February 12, 2018, circular that got challenged in court leading to the quashing of the circular will be done away with in the new circular. Instead, banks will be given more time to identify and qualify an account as bad debt and also be given more time to resolve a case.

The RBI is likely to retain the main contours of its February 12, 2018 circular while making the referral to NCLT non-compulsory, sources told the news agency.

 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 19 Apr, 2019
  Daily Poll
Is counterfeiting a major threat to SMEs?
 Yes
 No
 Can't say
  Commented Stories
» Calicut University Collaborates with ACCA(1)
» Economic concerns amid poll heat(1)
» Govt mulls 'Online Udyog Aadhaar Form' to ease SME registration(1)
» Appoint distributors, expand your business(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter