RBI withdraws circular that asked banks to disclose IL&FS exposure, provisions
5 years, 8 months ago

RBI withdraws circular that asked banks to disclose IL&FS exposure, provisions

Live Mint  

Mumbai: The Reserve Bank of India on Wednesday withdrew its 24 April-circular which mandated banks to disclose their exposure to Infrastructure Leasing and Financial Services Ltd, and its group entities, in their notes to financial statements. This comes after the National Company Law Appellate Tribunal last week allowed banks to declare defaulting loans of IL&FS and its group companies as bad loans. “In view of the National Company Law Appellate Tribunal’s order dated May 2, 2019 in respect of Company Appeal No. RBI had earlier said that banks must disclose details, including total amount of exposure that are non-performing assets as per Income Recognition and Asset Classification norms, but not classified as NPA.

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History of this topic

RBI lifts curbs on Ashirvad Micro Finance, DMI Finance
1 day, 17 hours ago

RBI lifts curbs on Ashirvad Micro Finance, DMI Finance

The Hindu  

The Reserve Bank of India has lifted supervisory restrictions on Ashirvad Micro Finance Ltd. and DMI Finance Private Ltd. after getting satisfied about the corrective action taken by both the regulated entities. Subsequently, the above-mentioned companies initiated remedial action and submitted their various compliances to the Reserve Bank, the regulator said in a circular. “Now, having satisfied itself based on …

Should Banks Inform Borrowers About Changes In Interest Rates, Give Annual Loan Statements? Supreme Court Asks RBI
1 year, 3 months ago

Should Banks Inform Borrowers About Changes In Interest Rates, Give Annual Loan Statements? Supreme Court Asks RBI

Live Law  

The Supreme Court of India on Monday requested the Reserve Bank of India to submit an affidavit clarifying its directives concerning banks’ obligations to borrowers. A bench of Justices Sanjiv Khanna and SVN Bhatti was hearing a special leave petition filed by the Punjab National Bank against an August 2022 decision of the Punjab and Haryana High Court quashing a …

Private firm under CBI scanner for causing losses of ₹387 crore to banks
1 year, 4 months ago

Private firm under CBI scanner for causing losses of ₹387 crore to banks

Hindustan Times  

MUMBAI: The Central Bureau of Investigation has initiated two separate probes against a private firm for allegedly cheating and causing losses to the tune of around ₹387 crore to the Canara Bank and the Central Bank of India. The bank’s complaint accused Varun Industries Ltd, and its directors, unknown directors/ officials of the company, unknown public servant, and others for …

Public Sector Banks Can Seek Look Out Circulars Against Defaulters Only If Detrimental To Economic Interest Of India: Kerala High Court
2 years, 4 months ago

Public Sector Banks Can Seek Look Out Circulars Against Defaulters Only If Detrimental To Economic Interest Of India: Kerala High Court

Live Law  

The Kerala High Court recently held that the public sector banks can request for opening of Look Out Certificates against defaulting account holders, only if the departure of the defaulter would be detrimental to the economic interest of India or it would not be in the larger public interest.Justice V.G. The Kerala High Court recently held that the public sector …

CIC Stays RBI Order Directing Bank To Disclose RTI Information On NPAs & Top Defaulters
3 years, 6 months ago

CIC Stays RBI Order Directing Bank To Disclose RTI Information On NPAs & Top Defaulters

Live Law  

The Central Information Commission has stayed the order of the First Appellate Authority of the Reserve Bank of India which had directed the disclosure of information on non-performing assets and top defaulters of the Saraswat Co-operative Bank Limited. The RBI's FAA issued the direction to the bank in an RTI application filed by former Commissioner Shailesh Gandhi, seeking information on …

Supreme Court Refuses To Stay RBI Notices To Bank Under RTI To Disclose Information
3 years, 6 months ago

Supreme Court Refuses To Stay RBI Notices To Bank Under RTI To Disclose Information

Live Law  

The Supreme Court on Friday refused the prayers made by Punjab National Bank and Union Bank of India to stay the RTI notices issued to them by the Reserve Bank of India to disclose information related to defaulters list, inspection reports etc.A division bench comprising Justices S Abdul Nazeer and Krishna Murari however issued notice on the writ petitions filed …

Contempt Petitions Filed Before Supreme Court For Alleged 'Wilful Violation' Of SC's Order On Non- Declaration Of NPAs
3 years, 7 months ago

Contempt Petitions Filed Before Supreme Court For Alleged 'Wilful Violation' Of SC's Order On Non- Declaration Of NPAs

Live Law  

Supreme Court has been moved by two Companies seeking punishment to contemners for flouting the top Court's order dated 3rd Sept 2020 whereby it had declared that " accounts which were not declared NPA till 31st August 2020 shall not be declared NPA till further orders " The petitions have been filed by Advocate Vishal Tiwari and Advocate Abhigya. The …

Plea Seeking Extension of The Benefits Of RBI Circular on Loan Moratorium To All NBFCs: SC Issues Notice
4 years, 7 months ago

Plea Seeking Extension of The Benefits Of RBI Circular on Loan Moratorium To All NBFCs: SC Issues Notice

Live Law  

The Supreme Court has issued notice to the Centre and Reserve Bank of India in a plea by The Confederation of Real Estate Developers' Associations of India which sought for clarification regarding whether all NBFCs were eligible for loan moratorium or whether banks had the discretion to give the benefit. On March 27, in wake of the COVID-19 pandemic and …

Indiabulls Moves Delhi HC Against SIDBI, Says Loan Installments Can't Be Demanded In Light of Moratorium Imposed by RBI [Read Order]
4 years, 9 months ago

Indiabulls Moves Delhi HC Against SIDBI, Says Loan Installments Can't Be Demanded In Light of Moratorium Imposed by RBI [Read Order]

Live Law  

Indiabulls Commercial Credit Limited has moved the Delhi High Court challenging the demands for loan installments made by Small Industries Development Bank of India. He further submitted that the loan instalment of Rs.31,94,79,453/- for the month of March was duly paid on 09.03.2020, whereafter due to the onset of the pandemic of COVID19 and the subsequent lockdown in the country, …

Allow FPIs to directly purchase distressed loans from banks: RBI task force
5 years, 4 months ago

Allow FPIs to directly purchase distressed loans from banks: RBI task force

Live Mint  

Bengaluru: A task force set up by India's central bank on Tuesday recommended a slew of measures for developing a secondary market for corporate loans, including easing of regulations to allow foreign portfolio investors to directly purchase distressed loans from banks. These moves are aimed at developing India's credit markets and come at a time when the country is facing …

IL&FS may file contempt case against nine banks for unauthorised withdrawals of about Rs 800 cr from firm's escrow accounts
5 years, 6 months ago

IL&FS may file contempt case against nine banks for unauthorised withdrawals of about Rs 800 cr from firm's escrow accounts

Firstpost  

The banks made “unauthorised auto-deduction from IL&FS escrow accounts” in the last six months towards debt recovery The board of debt-laden IL&FS is likely to file a contempt case against nine large banks including State Bank of India, Bank of Baroda, HDFC Bank for unauthorised withdrawals of about Rs 800 crore from the firm’s escrow accounts, a media report said. …

RBI withdraws circular asking banks to declare exposure to crisis-hit IL&FS
5 years, 8 months ago

RBI withdraws circular asking banks to declare exposure to crisis-hit IL&FS

Firstpost  

Following an NCLAT order, the Reserve Bank of India has withdrawn its circular asking banks and financial institutions to declare details of their exposure and provisions related to the crisis-hit IL&FS Mumbai: Following an NCLAT order, the Reserve Bank of India has withdrawn its circular asking banks and financial institutions to declare details of their exposure and provisions related to …

NCLAT allows banks to declare defaulting IL&FS accounts as NPAs
5 years, 8 months ago

NCLAT allows banks to declare defaulting IL&FS accounts as NPAs

Live Mint  

The National Company Law Appellate Tribunal on Thursday allowed the banks to declare as non-performing assets the accounts of IL&FS and its group companies that have defaulted on payments. However, the appellate tribunal has also clarified that although the banks would declare the IL&FS accounts as NPAs but can not initiate recovery process and debit money. The NCLAT had in …

RBI’s revised guidelines for resolution of stressed assets likely before May 23
5 years, 8 months ago

RBI’s revised guidelines for resolution of stressed assets likely before May 23

Live Mint  

New Delhi: The Model Code of Conduct for the Lok Sabha polls is unlikely to have any bearing on issuance of a revised framework for resolution of stressed assets by the Reserve Bank of India and the guidelines are expected to be announced before May 23, sources said. Against the backdrop of the Supreme Court quashing an RBI circular, issued …

RBI wants banks to disclose IL&FS NPAs, provisions in their Q4 results
5 years, 8 months ago

RBI wants banks to disclose IL&FS NPAs, provisions in their Q4 results

Live Mint  

Mumbai: The Reserve Bank of India on Wednesday asked banks to disclose their exposure to Infrastructure Leasing and Financial Services Ltd, and its group entities, in their notes to financial statements. In a notification, RBI said banks must disclose details, including total amount of exposure that are non-performing assets as per Income Recognition and Asset Classification norms, but not classified …

Banks have to mark IL&FS accounts as NPAs after default: RBI to NCLAT
5 years, 8 months ago

Banks have to mark IL&FS accounts as NPAs after default: RBI to NCLAT

India TV News  

The RBI Tuesday told the National Company Law Appellate Tribunal that banks will have to classify the accounts of debt-ridden IL&FS and its group companies as NPAs in terms of its master circular and the Supreme Court judgement. "And whatever process, you are having for resolution in IL&FS, we are not on recovery and the resolution process, we are only …

RBI’s revised debt resolution rules likely post-election
5 years, 8 months ago

RBI’s revised debt resolution rules likely post-election

Live Mint  

New Delhi: The RBI's revised stress assets resolution circular is likely to be out after the elections to clear the model code of conduct, and also the regulator may need time to have consultations with legal experts, industry and government before bringing the framework out, official sources said. As per the circular, banks were told to start the resolution process …

Fate Of The Accounts Covered Under The February 2018 Circular Post-Supreme Court Judgment
5 years, 9 months ago

Fate Of The Accounts Covered Under The February 2018 Circular Post-Supreme Court Judgment

Live Law  

The Supreme Court of India in the matter of Dharani Sugars & Chemical Ltd Vs. Union of India struck down Circular dated 12th February 2018 issued by RBI as ultra vires of section 35AA of the Banking Regulation Act, 1949. The Supreme Court analyzed the scope of power of RBI under Section 35 AA of the BR Act and held …

RBI to issue revised circular on bad loan resolution: Shaktikanta Das
5 years, 9 months ago

RBI to issue revised circular on bad loan resolution: Shaktikanta Das

Live Mint  

Mumbai: The Reserve Bank of India will issue a revised circular for resolution of stressed assets after its 12 February 2018 norms were struck down by the Supreme Court earlier this week, RBI governor Shaktikanta Das said on Thursday. The RBI will take steps in light of the court order, including issuance of a revised circular, for expeditious and effective …

SC repeals RBI's 12 February circular: Lenders can now refer defaulters to NCLT on case by case basis: Bankers
5 years, 9 months ago

SC repeals RBI's 12 February circular: Lenders can now refer defaulters to NCLT on case by case basis: Bankers

Firstpost  

According to former RBI deputy governor R Gandhi banks can now take defaulting companies on their own instead of being directed by the regulator. In the best interest of customers, banks will take a call on referring cases to National Company Law Tribunal on case by case basis, a top public sector bank official told PTI. Prior to the 12 …

SC Strikes Down RBI Circular Asking Banks To Take Defaulting Companies To Insolvency [Read Judgment]
5 years, 9 months ago

SC Strikes Down RBI Circular Asking Banks To Take Defaulting Companies To Insolvency [Read Judgment]

Live Law  

The Supreme Court today struck down the circular issued by the Reserve Bank of India on February 12, 2018 directing banks to initiate insolvency proceedings against companies having bad debts of Rs 2000 crores or above.The February 12 circular had directed banks to resolve debts over Rs 2000 crores within 180 days, failing which the corporate debtor would have to …

NCLAT order on IL&FS rewards imprudence, ignorance at banks
5 years, 10 months ago

NCLAT order on IL&FS rewards imprudence, ignorance at banks

Live Mint  

As court orders go, the latest by National Company Law Appellate Tribunal on Infrastructure Leasing and Financial Services Ltd was bizarre. Second, when the order says all financial institutions, it is unclear whether they were even parties to the intervening application in which this order was passed,” said Bhargavi Zaveri, senior researcher at think tank Indira Gandhi Institute of Development …

No lender can unilaterally tag accounts of IL&FS, group firms as NPAs: NCLAT
5 years, 10 months ago

No lender can unilaterally tag accounts of IL&FS, group firms as NPAs: NCLAT

Live Mint  

No bank or financial institution can declare the accounts of debt-ridden Infrastructure Leasing & Financial Services and its group companies as non-performing assets without National Company Law Appellate Tribunal’s permission, the appellate tribunal said on Monday. “No IL&FS or its subsidiaries’ account to be declared NPA by any financial institution without approval from NCLAT,” the appellate tribunal said. During the …

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