The Supreme Court on April 2 strikes down the Reserve Bank of India's circular on resolution of stressed assets. In a big win for sugar, power, textile, and shipyard sector, the apex court struck down RBI circular dated February 12, 2018 that mandated banks to initiate resolution of bad debts over Rs 2000 crore. The circular was seen as a stringent measure to curb accumulation of bad loans. It required banks to initiate resolution proceedings with defaulting companies in order to restructure loans within 180 days from the day they default. In the same month last year, home loans were growing at 16.5% over the preceding year.

Source: dna April 02, 2019 07:30 UTC