In the last three years, the Reserve Bank of India (RBI) has come out with several schemes to resolve the bad loan problem. Photo: ReutersNew Delhi/Mumbai: The cabinet on Wednesday decided to amend the Banking Regulation Act to put in place a scheme to resolve stressed assets in the banking system totalling about Rs9.64 trillion as of end- December and enable this capital to be redeployed productively in the economy. The government has also put in place an Insolvency and Bankruptcy Board of India (IBBI) to help turn around or to monetise stressed assets. “The bankruptcy code will help in preventing future generation of stressed assets. “Banks which are unlikely to approach IBBI for resolving most of their existing NPAs need an alternate mechanism that is efficient and cost effective.”

Source: Mint May 03, 2017 15:25 UTC