Facebook Instagram Twitter Youtube
  • Home
  • Latest
  • Punjab
  • Himachal Pradesh
  • Haryana
  • Education
  • Health
  • Transfer
  • Punjabi News
  • India
  • Others
  • Contact Us
  • Election 2024
Search
Sign in
Welcome! Log into your account
Forgot your password? Get help
Password recovery
Recover your password
A password will be e-mailed to you.
Royal Patiala Royal Patiala
Royal Patiala Royal Patiala
  • Home
  • Latest
  • Punjab
  • Himachal Pradesh
  • Haryana
  • Education
  • Health
  • Transfer
  • Punjabi News
  • India
  • Others
  • Contact Us
  • Election 2024
Home Others RBI issues new NPA recognition norms

RBI issues new NPA recognition norms

288
Share
Facebook
Twitter
Pinterest
WhatsApp
Linkedin
Email
Print
Telegram
    RBI issues new NPA recognition norms-Photo courtesy-Internet

    RBI issues new NPA recognition norms

    Mumbai-The Reserve Bank Friday issued a new framework for resolution of bad loans, replacing the previous norms quashed by the Supreme Court in April, offering a 30-day gap for stress recognition instead of the one-day default earlier.

    The new norms replaces all the earlier resolution plans such as the framework for revitalising distressed assets, corporate debt restructuring scheme, flexible structuring of existing long-term project loans, strategic debt restructuring scheme (SDR), change in ownership outside SDR, and scheme for sustainable structuring of stressed assets (S4A), and the joint lenders’ forum with immediate effect.

    RBI issues new NPA recognition norms-Photo courtesy-Internet

    The apex court had on April 2 struck down the stringent RBI circular, issued on February 12, 2018, for resolving bad loans under which a company could be labeled an NPA if it missed repayment for a day banks were asked to find a resolution within 180 days or else it should be sent to bankruptcy courts.

    The new circular provides for a framework for early recognition, reporting and time-bound resolution of bad loans.

    The central banks said lenders shall recognise incipient stress in loan accounts, immediately on default, by classifying such assets as special mention accounts (SMA).

    Since default with any lender is a lagging indicator of financial stress faced by the borrower, it is expected that the lenders initiate the process of implementing a resolution plan (RP) even before a default.

    The central bank said once a borrower is reported to be in default by any lenders, financial institutions, small finance banks or NBFCs, the lenders shall undertake a prima facie review of the borrower account within 30 days from the day of default.

    During this review period of 30 days, lenders may decide on the resolution strategy, including the nature of the resolution plan (RP) and the approach for implementation of the RP.

    RBI issues new NPA recognition norms-Photo courtesy-Internet

    “In cases where RP is to be implemented, all lenders shall enter into an inter-creditor agreement (ICA), during the review period, to provide for ground rules for finalisation and implementation of the RP in respect of borrowers with credit facilities from more than one lender,” the new RBI circular said.

    The lenders are free to initiate legal proceedings for insolvency or recovery, the central bank said.

    The joint lenders’ forum (JLF) as mandatory institutional mechanism for resolution of stressed accounts also stands discontinued, the RBI said.

    The RBI said the new directions will come into force with immediate effect.

    PTI-June,7

     

    Share
    Facebook
    Twitter
    Pinterest
    WhatsApp
    Linkedin
    Email
    Print
    Telegram
      Previous articleGolden Temple Street, Amritsar recognized as a ‘Clean Street Food Hub’
      Next articleSaket Kumar appointed PS to Home Minister Amit Shah
      Kanwar Inder Singh

      RELATED ARTICLESMORE FROM AUTHOR

      11th International Yoga Day: Yoga for ONE EARTH, ONE HEALTH- Vaidya Vandna Vats

      11th International Yoga Day: Yoga for ONE EARTH, ONE HEALTH- Vaidya Vandna Vats

      Electors to get Electors Photo Identity Cards (EPICs) within 15 days of update in the electoral rolls-ECI

      Electors to get Electors Photo Identity Cards (EPICs) within 15 days of update in the electoral rolls-ECI

      International Father’s Day: Father is the pillar of home and mother is its builder-Puri-Photo courtesy-Jagran Josh

      International Father’s Day: Father is the pillar of home and mother is its builder-Puri

      MOST POPULAR

      Despite CM’s announcement, it took almost 3 weeks for issuing appointment letter to Director Administration, PSPCL

      Despite CM’s announcement, it took almost 3 weeks for issuing appointment...

      JGNDPSO University organises webinar on ‘Girl Child in India: Issues and Concerns’-VC

      Punjab govt allotted “Religious Chair’s” becomes operational at JGNDPSO University-VC

      GNDU, Punjabi University won the Championships

      GNDU, Punjabi University won the Championships

      ਮੁੱਖ ਮੰਤਰੀ ਪੰਜਾਬ ਥਾਲੀ ਚ’ ਪਰੋਸ ਕੇ ਅਕਾਲਿਆਂ ਨੂੰ ਸਰਕਾਰ ਦੇਣ...

      Load more

      HOT NEWS

      8 IAS-IFS-PCS officers transferred in Punjab; key changes in technical, higher, school education

      IAS transfers: 6 DCs amongst 8 IAS transferred in Punjab

      Punjab govt hold on ongoing physical re-verification of disabled government employees

      Punjab govt hold on ongoing physical re-verification of disabled government employees

      Sangrur Police salute the brave martyrs on Police Commemoration Day -SSP

      Schools re-opening in Punjab-health minister issues instructions for school management

      MRI + CT centres to be set up on PPP mode...

      EDITOR PICKS

      The City Beautiful turns 71

      Patiala’s foundation day goes unnoticed

      Srinagar’s ‘PariMahal’ –Abode of Fairies: Mohammad Hanief

      POPULAR POSTS

      “A Decade of IDY” was commemorated by Office of Controller of Communication Accounts, Punjab Telecom Circle, at Chandigarh

      BSF (Western Command) celebrated 11th International Yoga Day

      List of today’s Punjab Cabinet decisions; Punjab factory rules amended, nod to amend section 29(3) of the PRTPD act etc

      POPULAR CATEGORY

      • Punjab12128
      • Education2137
      • Covid-19-Update2085
      • Others1719
      • India1384
      • ਪੰਜਾਬੀ ਖਬਰਾਂ1384
      • Health1278

      ABOUT US

      The RoyalPatiala Sites may contain links to or advertisements concerning other Web sites. Other sites may also reference, advertise, or link to RoyalPatiala Site.

      Contact us: [email protected]

      FOLLOW US

      Facebook
      Instagram
      Twitter
      Youtube

      © All Rights Reserved

      • Home
      • Privacy Policy