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

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 by the Reserve Bank of India and the guidelines are expected to be announced before 23 May, sources said. Earlier this month, the Supreme Court had quashed the RBI’s 12 February circular on stressed loan recognition and resolution of large borrowers over Rs 2,000 crore, terming it as ultra vires. The RBI is looking into all the concerns raised by various stakeholders including banks and power sector companies and may look to tweak the circular without diluting it completely so that the momentum towards resolution of stressed assets is not affected, sources said.