Vishwanathan has defended the new bad loan rules announced in February, saying they were aimed at improving credit culture and nudging banks to be proactive in tackling NPA accounts. Photo: Abhijit Bhatlekar/MintMumbai: The Reserve Bank of India (RBI) seems to have ruled out relaxations in its new bad loan rules. The new bad loan rules stipulate that starting 1 March, lenders must implement a resolution plan within 180 days for loan accounts of at least Rs2,000 crore, failing which the defaulting borrowers must be referred to insolvency courts. They also mandate banks to report defaults weekly to RBI, even if loan payments are delayed by a day. In his speech, Vishwanathan also cautioned about the “herd movement among bankers” to grow retail credit and the personal loan segment.

Source: Mint April 18, 2018 18:11 UTC