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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
Reuters
Reuters
Reuters, Mumbai
People walk past a barricade inside the Reserve Bank of India (RBI) headquarters in Mumbai, India June 7, 2017.
People walk past a barricade inside the Reserve Bank of India (RBI) headquarters in Mumbai, India June 7, 2017. (Reuters)
         

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.

First Published: Jun 13, 2017 21:58 IST

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