RBI outlines plans for resolution of bank bad loan
The RBI identified 12 accounts that constitute about 25% of the overall gross NPAs in the system.business Updated: Jun 13, 2017 21:58 IST
The Reserve Bank of India outlined on Tuesday a plan to expedite the resolution of the $150 billion bad debt problem plaguing the country’s banks by focusing first on some of the large stressed accounts held by lenders.
The RBI, in a statement, said it has identified 12 accounts that constitute about 25% of the overall gross non-performing assets in the system and directed lenders to begin insolvency proceedings around these accounts immediately.
The move comes about a month after the Indian government changed rules giving the central bank greater power to deal with bad loans.