RBI monetary policy: New NPA resolution norms in 3-4 days, says central bank governor Shaktikanta Das

Mumbai: The Reserve Bank will issue a revised circular on bad loan recognition within the next three-four days, replacing the 12 February circular that was struck down by the apex court. [caption id=“attachment_5766671” align=“alignleft” width=“380”] File image of RBI governor Shaktikanta Das. Reuters.[/caption] On 2 April, the Supreme Court had declared as “ultra vires” the 12 February circular that mandated banks to label even a day’s default as NPA. “The revised circular on 12 February on NPA classification will be issued very shortly, in three to four days,” Das told reporters at the customary post-policy announcement. The RBI on 12 February, 2018, issued a framework on the resolution of stressed assets under which banks were asked to disclose defaults even of a day and have to find a resolution plan within 180 days in case of the large account of Rs 2,000 crore and above failing which it would send for bankruptcy.