The Model Code of Conduct for the Lok Sabha polls is unlikely to have any bearing on issuance of a revised framework for resolution of stressed assets by the Reserve Bank and the guidelines are expected to be announced before May 23, sources said.<\/p>\n\n\n\n
Against the backdrop of \nthe Supreme Court quashing an RBI circular, issued on February 12, 2018,\n a revised set of rules is under works and would be released soon, they \nsaid.Earlier this month, the Supreme Court had quashed the RBI\u2019s \nFebruary 12 circular on stressed loan recognition and resolution of \nlarge borrowers over Rs 2,000 crore, terming it as \u201cultra vires\u201d.\u201cThe \nmodel code of conduct exempts RBI\u2019s monetary policy. It is unlikely to \nattract any action if the RBI issues the revised circular,\u201d sources \nsaid.<\/p>\n\n\n\n
The RBI is looking into all the concerns raised by various \nstakeholders including banks and power sector companies and may look to \ntweak the circular without diluting it completely so that the momentum \ntowards resolution of stressed assets is not affected, sources said.<\/p>\n\n\n\n
Sources\n said various options are being explored for rejigging the NPA \nframework. One of the options is giving 30-60 days more time in addition\n to existing 90 days before initiating resolution process for stressed \naccounts, they added.<\/p>\n\n\n\n
While the 90-day period for recognising an \naccount as NPA would remain, the central bank would be looking at \nproviding more leeway for the entities concerned to repay the loans, \nthey said.<\/p>\n\n\n\n
Sources said that providing additional time for \nrepayment would help in mitigating hardships faced by micro, small and \nmedium enterprises to some extent.In a report last year, the government \nhad favoured additional 180 days to be provided for resolution of 34 \nstressed power projects with a view to avoiding potential value erosion \nof operating plants. The Supreme Court quashed the circular following a \npetition filed by around 70 stressed companies from the power, shipping \nand textiles sectors.\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"
The Model Code of Conduct for the Lok Sabha polls is unlikely to have any bearing on issuance of a revised framework for resolution of stressed assets by the Reserve Bank and the guidelines are expected to be announced before May 23, sources said. Against the backdrop of the Supreme Court quashing an RBI circular, […]<\/p>\n","protected":false},"author":1,"featured_media":60245,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[410],"tags":[],"class_list":["post-60244","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/60244","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/comments?post=60244"}],"version-history":[{"count":1,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/60244\/revisions"}],"predecessor-version":[{"id":60246,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/60244\/revisions\/60246"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media\/60245"}],"wp:attachment":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media?parent=60244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/categories?post=60244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/tags?post=60244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}