New NPA framework soon
5 years, 11 months ago

New NPA framework soon

Deccan Chronicle  

Mumbai: With the Supreme Court quashing the Reserve Bank of India’s February 12, 2018 circular on resolution of stressed assets as ultra vires, the central bank would be coming out with a revised circular on resolution of stressed assets. Das said that the Supreme Court order struck down the February 12 circular regarding resolution of stressed assets but the validity of section 35AA of the Banking Regulation Act remains intact. He said that the Supreme Court’s order did not cast any doubt on the powers of the RBI either under section 35AA of the Banking Regulation Act or under any other section. The validity of section 35AA of the Banking Regulation Act 1949 stands and henceforth we have to comply with the direction of Supreme Court and act accordingly,” Das said. “In the light of the Supreme Court order, the RBI will take necessary steps, including issuance of revised circular as may be necessary for expeditious and effective resolution of stressed assets,” he added.

Supreme Court Resolution Assets Rbi Das Act Circular Stressed Stressed Assets Section 35Aa 35Aa  framework  stressed  rbi  resolution  assets  supreme  court  npa  35aa  circular  act  regulation  soon

History of this topic

Should Banks Inform Borrowers About Changes In Interest Rates, Give Annual Loan Statements? Supreme Court Asks RBI
1 year, 6 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 …

MP High Court Upholds Eligibility Criteria Laid Down By Bank Of Baroda For Its Borrowers To Avail Benefits Of Resolution Framework 2.0 Issued By RBI
2 years, 9 months ago

MP High Court Upholds Eligibility Criteria Laid Down By Bank Of Baroda For Its Borrowers To Avail Benefits Of Resolution Framework 2.0 Issued By RBI

Live Law  

The Madhya Pradesh High Court, Indore Bench has recently upheld the eligibility criteria laid down by the Bank of Baroda for its borrowers to avail the benefits of the Resolution Framework 2.0 issued by the Reserve Bank of India. Justice Vivek Rusia held that the eligibility criteria of the Bank of Baroda, whereby only those borrowers were eligible whose accounts …

Borrower Can't Claim Loan Moratorium As A Right Based On RBI's Circular Of March 2020 : Karnataka High Court
3 years, 2 months ago

Borrower Can't Claim Loan Moratorium As A Right Based On RBI's Circular Of March 2020 : Karnataka High Court

Live Law  

The Karnataka High Court recently set aside the directionsissued to Reserve Bank of India by a single judge bench of the High Court directing it to monitor the implementation of Covid-19 package announced on March 27, 20202, by which RBI had allowed Banks to declare a three-month moratorium on all term loans, outstanding as on March 1, 2020. Senior Advocate …

RBI Has Wide Supervisory Powers Over Financial Institutions Like SIDBI, Its Directions Are Statutorily Binding: Supreme Court
3 years, 2 months ago

RBI Has Wide Supervisory Powers Over Financial Institutions Like SIDBI, Its Directions Are Statutorily Binding: Supreme Court

Live Law  

A Supreme Court bench comprising, while presiding over a matter regarding delayed payments of principal amount and interest accrued on bonds issued by SIDBI, stated that " The facts of the case relate to the issuance of a number of bonds by the appellant to M/s. The appellant refused to do so citing that RBI had issued a facsimile directing …

Kerala High Court Issues Notice To Centre, RBI On Plea Against Amendments To Banking Regulation Act
3 years, 3 months ago

Kerala High Court Issues Notice To Centre, RBI On Plea Against Amendments To Banking Regulation Act

Live Law  

The Kerala High Court will consider if the Banking Regulation Act, 2020 takes away the legislative power of States under item 32 in List II in the 7th schedule of the Constitution and whether it is liable to be declared as unconstitutional. The petition was filed by two urban co-operative banks registered under the Kerala Co-operative Societies Act and Rules, …

Madhya Pradesh High Court Stays RBI Circular On Urban Cooperative Banks
3 years, 6 months ago

Madhya Pradesh High Court Stays RBI Circular On Urban Cooperative Banks

Live Law  

The Madhya Pradesh High Court has stayed a circular issued by the Reserve Bank of India on June 25 which laid down several conditions related to Urban Coopeartive Banks.A division bench comprising Chief Justice Mohammad Rafiq and Justice Vijay Kumar Shukla passed the interim order on September 3 while issuing notice on a writ petition filed by Mahanagar Nagrik Sahkari …

RBI relaxes current account norms, extends deadline to implement new rules. Check details
3 years, 7 months ago

RBI relaxes current account norms, extends deadline to implement new rules. Check details

India TV News  

The Reserve Bank of India on Wednesday issued guidelines for the implementation of the circular on the opening of current accounts by banks. The central bank has given banks time until October end to implement the new rules on current accounts issued in 2020. In the case of borrowers who have not availed of the CC/OD facility from any bank, …

Contempt Petitions Filed Before Supreme Court For Alleged 'Wilful Violation' Of SC's Order On Non- Declaration Of NPAs
3 years, 10 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 …

RBI Is 'State' Under Article 12; Private Banks Discharging Public Functions Amenable To Writ Jurisdiction: Calcutta High Court
4 years ago

RBI Is 'State' Under Article 12; Private Banks Discharging Public Functions Amenable To Writ Jurisdiction: Calcutta High Court

Live Law  

The Calcutta High Court has held that th Reserve Bank of India is "State" under Article 12 of the Constitution and thus, a writ petition is maintainable against it. The Single Bench ruled, "Since the Reserve Bank of India is an instrumentality of the State, it comes squarely within the meaning of "State" as contemplated in Article 12 of the …

Loan Moratorium- Resolution Framework For COVID-Related Stress More Restrictive Than Prudential Norms For Normal Times: SC Told
4 years, 3 months ago

Loan Moratorium- Resolution Framework For COVID-Related Stress More Restrictive Than Prudential Norms For Normal Times: SC Told

Live Law  

Senior Advocate Ravindra Srivastava, for the group, told the bench of Justices Ashok Bhushan, R. Subhash Reddy and M. R. Shah that the banks are "prevailing over" the government and the RBI and "making huge profits". Mr. Srivastava argued that while the Kamath committee had mentioned 26 sectors as having been severely-impacted during the Covid pandemic, the waiver of compound …

Can Banks Continue SARFAESI Proceedings With Respect To Loan Accounts Declared As NPA Prior To Lockdown? Kerala HC Seeks Response From Centre,State [Read Order]
4 years, 6 months ago

Can Banks Continue SARFAESI Proceedings With Respect To Loan Accounts Declared As NPA Prior To Lockdown? Kerala HC Seeks Response From Centre,State [Read Order]

Live Law  

The Kerala High Court has sought response from the Central Government about the banks' plea seeking permission to continue SARFAESI proceedings with respect to loan accounts which were declared as NPA prior to the declaration of lockdownThe Full bench comprising the Chief Justice S. Manikumar, Justices CT Ravikumar and Shaji P. Chaly was considering an application filed by State Bank …

One-time restructuring of loans biggest takeaway of RBI monetary policy
4 years, 7 months ago

One-time restructuring of loans biggest takeaway of RBI monetary policy

New Indian Express  

"It has been decided to provide a window under the June 7th Prudential Framework to enable lenders to implement a resolution plan in respect of eligible corporate exposures - without change in ownership - as well as personal loans, while classifying such exposures as standard assets, subject to specified conditions," Governor Das said in his statement. The RBI governor added …

Steps Taken By RBI Are For The Benefit Of Depositors; Bombay HC Refuses To Stay RBI's Decision To Cancel CKP Co-Operative Bank's License [Read Order]
4 years, 9 months ago

Steps Taken By RBI Are For The Benefit Of Depositors; Bombay HC Refuses To Stay RBI's Decision To Cancel CKP Co-Operative Bank's License [Read Order]

Live Law  

The Bombay High Court last week refused to stay the decision of the Reserve Bank of India to cancel the license of CKP Co-operative bank and observed that the steps taken by the central bank are in the interest of depositors. Division bench of Justice Nitin Jamdar and Justice SP Tavade were hearing two writ petitions filed by Vishwas Utagi …

Plea Seeking Extension of The Benefits Of RBI Circular on Loan Moratorium To All NBFCs: SC Issues Notice
4 years, 10 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 …

Coronavirus | Supreme Court directive to RBI on loan repayment moratorium
4 years, 10 months ago

Coronavirus | Supreme Court directive to RBI on loan repayment moratorium

The Hindu  

The Supreme Court on Thursday asked Reserve Bank of India to ensure that the central bank’s March 27 circular directing banks and financial institutions to provide borrowers a three-month moratorium on loan repayments is implemented in “letter and spirit” amid the COVID-19 pandemic. “We direct Reserve Bank of India to ensure the implementation of the circular dated March 27, 2020 …

Lockdown : Delhi HC Freezes NPA Classification Taking Note Of RBI Advisory On Moratorium [Read Order]
4 years, 10 months ago

Lockdown : Delhi HC Freezes NPA Classification Taking Note Of RBI Advisory On Moratorium [Read Order]

Live Law  

The Delhi High Court has restrained YES Bank from declaring a loan account as a 'Non Performing Asset' for non payment of installment due to unprecedented circumstances brought about by COVID19 pandemic. Following the order passed in the case Anant Raj Ltd vs Yes Bank Ltd, the Single Bench of Justice Hari Shankar held that the Petitioner was entitled to …

RBI's Intention Is To Maintain Status Quo On Account Classification As On March 1 During Moratorium Period : Delhi HC [Read Order]
4 years, 11 months ago

RBI's Intention Is To Maintain Status Quo On Account Classification As On March 1 During Moratorium Period : Delhi HC [Read Order]

Live Law  

The Delhi High Court has provided interim relief to an account from being declared a Non Performing Asset by the Punjab & Sind Bank, in light of the moratorium allowed by the RBI by its circular issued on March 27. While passing the interim order, the bench expressed agreement with the view expressed by another bench in the case Ananth …

RBI Advisory On Moratorium Applicable Even To Loans On Default As On 1st March : Delhi HC [Read Order]
4 years, 11 months ago

RBI Advisory On Moratorium Applicable Even To Loans On Default As On 1st March : Delhi HC [Read Order]

Live Law  

The Delhi High Court has held that the advisory issued by Reserve Bank of India on moratorium on loans in the wake of COVID-19 pandemic is applicable even to loans which were on default as on March 1, 2020.On this premise, the Court restrained Yes Bank from classifying a loan, which was on default since January 1, as Non Performing …

Delhi HC Restores 'Status Quo Ante' With Respect To Loan Classified As NPA By Yes Bank Amid COVID-19 [Read Order]
4 years, 11 months ago

Delhi HC Restores 'Status Quo Ante' With Respect To Loan Classified As NPA By Yes Bank Amid COVID-19 [Read Order]

Live Law  

The Delhi High Court has held that YES Bank should not have classified a loan account as Non Performing Asset when delay in payment of installments was caused due to the conditions brought about by the effects of COVID19. Accordingly, status quo ante is restored qua the classification of the account of petitioner and the account classification as it stood …

Resolving stressed assets on time in your interest: RBI deputy governor NS Vishwanathan to banks
5 years, 7 months ago

Resolving stressed assets on time in your interest: RBI deputy governor NS Vishwanathan to banks

Firstpost  

Reserve Bank deputy governor NS Vishwanathan Tuesday exhorted bankers to ensure timely resolution of stressed assets under the new framework to extract the best value and underlined the need for dealing only in “genuine” cases Mumbai: Reserve Bank deputy governor NS Vishwanathan Tuesday exhorted bankers to ensure timely resolution of stressed assets under the new framework to extract the best …

RBI's norms to give more headroom to lenders to resolve big ticket NPAs: Report
5 years, 9 months ago

RBI's norms to give more headroom to lenders to resolve big ticket NPAs: Report

India TV News  

Reserve Bank's new guidelines to deal with bad loans will provide lenders the headroom and flexibility for resolution of large ticket stressed asset cases under the Insolvency and Bankruptcy Code, according to a report. "A better time frame and transition offered in the revised framework on this would allow the lenders the headroom and flexibility for resolution in large ticket …

RBI's norms to give more headroom and flexibility to lenders to resolve big ticket NPAs: Report
5 years, 9 months ago

RBI's norms to give more headroom and flexibility to lenders to resolve big ticket NPAs: Report

Firstpost  

RBI came out with a revised prudential framework for resolution of stressed assets after its February 2018 circular in this regard was struck down by the Supreme Court. New Delhi: Reserve Bank’s new guidelines to deal with bad loans will provide lenders the headroom and flexibility for resolution of large ticket stressed asset cases under the Insolvency and Bankruptcy Code, …

RBI's new framework to expedite resolution of stressed assets: Sashakt committee on bad loans
5 years, 9 months ago

RBI's new framework to expedite resolution of stressed assets: Sashakt committee on bad loans

Firstpost  

The Reserve Bank on Friday had replaced a tough norm on NPA categorisation by lenders, as it was quashed by the Supreme Court in April New Delhi: The mandatory norm of inter-creditor agreement allows banks to decide resolution strategy outside the IBC and it will help lenders to accelerate process to resolve stressed assets, Sashakt committee on bad loans said …

'RBI's new framework to expedite resolution of stressed assets'
5 years, 9 months ago

'RBI's new framework to expedite resolution of stressed assets'

India TV News  

The mandatory norm of inter-creditor agreement allows banks to decide resolution strategy outside the IBC and it will help lenders to accelerate process to resolve stressed assets, Sashakt committee on bad loans said Monday. "The requirement of entering into the Inter-Creditor Agreement is an endorsement by the RBI of the need for the lenders to have a framework for resolution …

RBI’s new prudential framework for stressed asset resolution credit positive: Moody’s
5 years, 9 months ago

RBI’s new prudential framework for stressed asset resolution credit positive: Moody’s

India TV News  

Moody’s Investors Service Monday said the Reserve Bank's new prudential framework for stressed asset resolution is ‘credit positive’, but flagged the slower-than-expected progress of resolution under Insolvency and Bankruptcy Code as a key hurdle. “The RBI’s revised framework for the resolution of stressed assets is credit positive, because it brings back the focus on the need for the timely resolution …

RBI sets new stressed assets norms
5 years, 9 months ago

RBI sets new stressed assets norms

Deccan Chronicle  

Mumbai: The Reserve Bank of India on Friday issued a new framework for resolution of stressed assets, putting less stringent requirement on banks for classifying defaults as bad loans while at the same time continuing to incentivise them for accelerated resolution of stressed assets. The new norms require lenders to resolve non-performing assets over Rs 2,000 crore within 180 days …

RBI revises prudential norms for NPAs, gives banks 30 days to review stressed loans
5 years, 9 months ago

RBI revises prudential norms for NPAs, gives banks 30 days to review stressed loans

ABP News  

New Delhi: The Reserve Bank of India on Friday issued new guidelines for dealing with non-performing assets after the Supreme Court quashed its February 12, 2018, circular, which had mandated the lenders to start resolution even in case of one-day default, leading to huge protests from various quarters, particularly defaulters from the power sector. Lenders shall recognise incipient stress in …

New NPA resolution norms soon
5 years, 9 months ago

New NPA resolution norms soon

Deccan Chronicle  

Mumbai: The RBI on Thursday said it will come out with a revised circular on resolution of stressed assets "within the next three-four days". On April 2, the Supreme Court had quashed the RBI’s stringent, February12, 2018 circular on resolution of stressed assets as ‘ultra vires’. The Feb. 12 circular had directed lenders to refer loan accounts of over Rs …

RBI to issue revised NPA circular in 3-4 days: Shaktikanta Das
5 years, 9 months ago

RBI to issue revised NPA circular in 3-4 days: Shaktikanta Das

Live Mint  

Mumbai: Reserve Bank of India Governor Shaktikanta Das on Thursday said the RBI will issue a new circular on non-performing assets in three to four days. After the previous monetary policy meet in April, Das had told reporters that the central bank will take necessary steps including the issuance of a revised circular "as may be necessary for the effective …

RBI's revised guidelines for resolution of stressed assets likely before 23 May; poll code may not impact issuance of new rules
5 years, 10 months ago

RBI's revised guidelines for resolution of stressed assets likely before 23 May; poll code may not impact issuance of new rules

Firstpost  

Against the backdrop of the Supreme Court quashing an RBI circular, issued on 12 February, 2018, a revised set of rules is under works and would be released soon, they said. New Delhi/Mumbai: 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 …

RBI’s revised guidelines for resolution of stressed assets likely before May 23
5 years, 10 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’s revised debt resolution rules likely post-election
5 years, 11 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, 11 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, 11 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, 11 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 …

RBI 12 February circular no more: What it means for banks, IBC cases
5 years, 11 months ago

RBI 12 February circular no more: What it means for banks, IBC cases

Live Mint  

Mumbai: The Supreme Court setting aside the Reserve Bank of India’s 12 February 2018 circular to replace all loan restructuring schemes with a formal bankruptcy process has restored previous debt recast options for defaulting companies and given a free hand to banks to explore steps to rescue such companies outside the court. Catch all the latest news in our blog: …

Supreme Court quashing 12 February circular a healthy wake-up call for RBI
5 years, 11 months ago

Supreme Court quashing 12 February circular a healthy wake-up call for RBI

Live Mint  

"There is a very real danger that financial regulation will become a wolf in sheep’s clothing,” former US treasury secretary Henry Paulson once said. The infamous 12 February 2018 circular of RBI that laid down broad rules for banks to take back their dues from errant borrowers found no love from the judiciary. For perspective, while the law stated that …

SC quashes RBI Feb 12 circular: What it means for deal activity in India
5 years, 11 months ago

SC quashes RBI Feb 12 circular: What it means for deal activity in India

Live Mint  

Mumbai: India-focused distressed assets funds may see higher deal activity in pre-National Company Law Tribunal cases with the Supreme Court quashing the Reserve Bank of India’s 12 February 2018 circular on Tuesday. RBI had on 12 February 2018 ordered lenders to begin bankruptcy proceedings against defaulters before NCLT if they failed to make interest payment within 180 days of missing …

RBI 12 February circular quashed gives power sector some breathing space
5 years, 11 months ago

RBI 12 February circular quashed gives power sector some breathing space

Live Mint  

Mumbai: The striking down of the Reserve Bank of India’s 12 February 2018 circular, which would have fast-forwarded defaulting companies to bankruptcy court, will now save stressed power assets from immediate liquidation, according to power sector executives. “This provides much-needed relief to power companies which had been taken to NCLT under the RBI circular, including assets of RattanIndia, GVK, IL&FS …

RBI Feb 12 circular quashed. All eyes now on monetary policy
5 years, 11 months ago

RBI Feb 12 circular quashed. All eyes now on monetary policy

Live Mint  

Mumbai/New Delhi: The Supreme Court on Tuesday quashed RBI's 12 February circular that had set strict norms for bad loan resolution, easing the concerns of some debt-laden companies and upending India’s fledgling bankruptcy process. The RBI circular directed banks to refer defaulters to bankruptcy courts if they were unable to find a resolution plan within 180 days for stressed accounts …

Supreme Court quashes RBI’s February 12 circular on one-day default
5 years, 11 months ago

Supreme Court quashes RBI’s February 12 circular on one-day default

Deccan Chronicle  

Mumbai: The Supreme Court on Tuesday declared as unconstitutional the Reserve Bank of India’s February 12, 2018 circular on defaulting companies. The Supreme Court held that in the light of section 35AA of the Banking Regulation Act, the RBI could not have issued a generic circular mandating reference under the Insolvency and Bankruptcy Code. As a result, all cases in …

Banks can now refer defaulters to NCLT on case by case basis: Bankers
5 years, 11 months ago

Banks can now refer defaulters to NCLT on case by case basis: Bankers

Live Mint  

With the Supreme Court nixing February 12 circular, the banks will now have discretion in taking the defaulting companies to NCLT under Insolvency and Bankruptcy Code, said experts. 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. …

Supreme Court order on NPAs: Power firms body heaves a sigh of relief
5 years, 11 months ago

Supreme Court order on NPAs: Power firms body heaves a sigh of relief

Live Mint  

Welcoming the Supreme Court ruling quashing the RBI circular on resolution of stressed assets, the Association of Power Producers on Tuesday said it will give some breather and flexibility to restructure their debt. The apex court quashed the RBI circular of 12 February, 2018, that made it mandatory for banks to recognize even a one-day defaults by the borrowers and …

SC order quashing RBI circular to give relief to power companies but delay bankruptcy proceedings
5 years, 11 months ago

SC order quashing RBI circular to give relief to power companies but delay bankruptcy proceedings

Hindustan Times  

The Supreme Court order quashing a Reserve Bank of India circular on resolving bad debt will provide relief to power companies and lenders as well as flexibility to restructure debts but will slowdown bankruptcy proceedings, experts said Tuesday. The Supreme Court on Tuesday quashed RBI’s February 12 circular, which prescribed rules for recognising one-day defaults by large corporates and initiating …

RBI to decide on required action after SC order: Arun Jaitley
5 years, 11 months ago

RBI to decide on required action after SC order: Arun Jaitley

Live Mint  

Within hours of the Supreme Court voiding the RBI's timebound debt resolution circular of last February, a cautious government said on Tuesday that, on the nullifying of this directive, the central bank would have to decide on what is required to be done for recovery of banks' bad loans. "RBI will now decide with the present condition of the market …

Authorization From Central Govt Necessary For RBI To Direct Insolvency Process Against Stressed Assets : SC [Read Judgment]
5 years, 11 months ago

Authorization From Central Govt Necessary For RBI To Direct Insolvency Process Against Stressed Assets : SC [Read Judgment]

Live Law  

In the judgment of the Supreme Court which quashed the general circular of Reserve Bank of India issued on February 12, 2018 on insolvency process against stressed assets, much turned on whether the power to issue such circular flew from Section 35A or Section 35AA of the Banking Regulation Act.While Section 35A talks about general powers of RBI to issue …

SC Strikes Down RBI Circular Asking Banks To Take Defaulting Companies To Insolvency [Read Judgment]
5 years, 11 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 …

Supreme Court strikes down RBI's 12 February circular on bankruptcy proceedings, declares it illegal
5 years, 11 months ago

Supreme Court strikes down RBI's 12 February circular on bankruptcy proceedings, declares it illegal

Firstpost  

Last month, the RBI had maintained that there was no dilution in its stand with regard to 12 February circular on stressed assets recognition and resolution. In a major relief to stressed power, sugar and infrastructure firms, the Supreme Court on Tuesday quashed the Reserve Bank of India’s 12 February, 2018 circular on bankruptcy proceedings and declared it ultra vires_,_ …

Supreme Court quashes RBI’s 12 February circular on one-day default
5 years, 11 months ago

Supreme Court quashes RBI’s 12 February circular on one-day default

Live Mint  

Mumbai: The Supreme Court on Tuesday quashed the Reserve Bank of India’s 12 February circular which prescribed rules for recognising one-day defaults by large corporates and called for insolvency action as a remedy. Since the central bank had also cancelled all its previous restructuring schemes in favour of 12 February circular, lenders will now have to individually look at resolution …

Discover Related