The Reserve Bank of India (RBI) on Tuesday said 12 accounts representing about 25% of the gross bad loans in the banking system would be eligible for immediate reference for bankruptcy proceedings. The accounts were shortlisted by an internal advisory committee (IAC), which mainly comprises the central bank’s independent board members. Under a May 5 ordinance amending the Banking Regulation Act, the central bank has the powers to suggest to, and even compel, banks to invoke proceedings against defaulters. Such cases will be accorded priority by the National Company Law Tribunal (NCLT),” the central bank said. So far, 81 cases of bad loans have been referred to NCLT, finance minister Arun Jaitley said on Monday after meeting bank chiefs.

Source: Hindustan Times June 14, 2017 05:03 UTC