According to the sources, the bankers told the panel that the 'one-day' default provision for NPA classification as per the latest RBI circular was too harsh and that it should be made more practical.The circular was issued on February 12 amid rising concerns over bad loans in the banking system. The bankers also informed the panel, headed by senior Congress leader T Subbarami Reddy , that the 180-day resolution plan for NPAs under the Insolvency and Bankruptcy Code (IBC) is "too less", sources said. Cases can be taken up for resolution under the IBC only after approval from the NCLT. Reddy also said that the RBI has promised to look into the suggestions made during the meeting. Gross NPAs of state-owned banks had crossed Rs 7.77 lakh crore at the end of December 2017, according to official data.

Source: Economic Times April 10, 2018 15:45 UTC