Hindusthan Samachar
Banner 2 मंगलवार, अप्रैल 23, 2019 | समय 00:28 Hrs(IST) Sonali Sonali Sonali Singh Bisht

SC declares RBI circular about 'bad loans' unconstitutional

By HindusthanSamachar | Publish Date: Apr 2 2019 2:06PM
SC declares RBI circular about 'bad loans' unconstitutional
New Delhi, Apr 02 (HS): The circular by RBI on 12th February regarding treatment of ''bad loans'' has been declared unconstitutional by Supreme Court and thus it stands cancelled. In this circular, it was mentioned that even default by one day in payment of loans of 2000 crores or more by individual or company, will be counted as Non-Performing Assets (NPA). This decision by SC has given the much sought for relief to sugar, shipping, power and textile companies. Now, the revised framework for loans has been laid down for resolution of stressed loans. According to this, 180 days will be given after default to any loan account holder of Rs 2000 crore or more. If It is not resolved during this period, the banks or lenders will need to inform to National Company Law Tribunal. And Bank or lender can file the insolvency case within 15 days after completion of deadline of this time period under Insolvency and Bankruptcy Code 2016. The banks can even resolve the insolvency cases without resorting to this code, after this decision of Supreme Court. This will encourage companies to settle their dues without having fear of insolvency declaration. The various companies in power sector and the Association of Power Producers were of the view that the previous RBI Circular didn''t suit this sector where there are, normally, huge under-recoveries from customers or where there is shortage of fuel being filled any time with international supply. Hindusthan Samachar/Sanjay/Bharati/Ram\
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