RBI deadline to initiate insolvency proceedings ends | Current Affairs, Current Affairs 2018

RBI deadline to initiate insolvency proceedings ends

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The deadline for banks to resolve insolvency proceedings ends today. The Reserve Bank of India in its second list of non-performing loans has identified 28 large stressed accounts and has given December 13 deadline to initiate insolvency proceedings.
Of the 28 accounts, which together account for 40 per cent of the system wide bad loans, 23 of them are set to be hauled to the National Company Law Tribunal.
Once the insolvency proceedings begin, banks will have to refer these large accounts to the NCLT in the next 18 days, that is December 31.
In August, the Reserve Bank had asked banks to either resolve 28 more large stressed accounts by December 13 or refer them to the National Company Law Tribunal (NCLT) by December 31.
According to rating agency ICRA, the RBI’s second list has accounts from diverse sectors and a total exposure of about Rs 1.15 lakh crore.
Lenders are pinning hopes on the RBI to extend its December 13 deadline to allow them time to restructure these accounts.
Banks will also have to make a provision of 50 per cent on these accounts by March 2018.

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