With total NPAs or bad loans of banks now close to Rs 700,000 crore, the money of banks stuck in these 12 accounts is estimated to be around Rs 175,000 crore. “The IAC also arrived at an objective, non-discretionary criterion for referring accounts for resolution under IBC,” the RBI said. The RBI is expected to release details of the resolution framework in regard to the other non-performing accounts soon. On June 12, the 12 accounts were identified by the IAC comprising mainly of the RBI’s independent board members. The amendment empowers the RBI to ask banks to initiate insolvency resolution proceedings for bankruptcy code cases and recover bad loans.

Source: Indian Express June 13, 2017 22:16 UTC