New Delhi: The RBI is likely to adopt a more accommodative approach towards resolution of stressed assets when it issues a revised circular sometime in the next few days, against the February 12 circular quashed by the Supreme Court. Sources said, the major contention in the controversial February 12, 2018, circular that got challenged in the court leading to its quashing, will be done away with in the new circular.
Instead, banks will be given more time to identify and qualify an account as bad debt and also be given more time to resolve the same. The RBI is likely to retain the main contours of its February 12 circular while making the referral to National Company Law Tribunal (NCLT) non-compulsory, sources told IANS.
It might, however, be guided by suggestions earlier given by the Indian Banking Association (IBA) for debt resolution for classification of NPA and resolution of bad assets. Bankers had suggested qualifying a loan as bad debt if the default was for a period of at least 90 days and not one day as was the case in the February 12 circular.
