One year of RBI's 12 February circular: A look at charts that depict bad loan scenario after central bank's crackdown on NPA menace
6 years, 1 month ago

One year of RBI's 12 February circular: A look at charts that depict bad loan scenario after central bank's crackdown on NPA menace

Firstpost  

In a bid to hasten the resolution of bad loans, RBI tightened rules to make banks identify and tackle any non-payment of loans rapidly by issuing a circular on 12 February 2018 Exactly a year ago, in a bid to hasten the resolution of bad loans, the Reserve Bank of India had tightened rules to make banks identify and tackle any non-payment of loan rapidly by issuing a circular on 12 February 2018. Under the new rules, insolvency proceedings would have to be initiated in case of a loan of Rs 2,000 crore or more if a resolution plan is not implemented within 180 days of the default. In the immediate quarter ending March 2018, after the RBI circular was issued, the total bad loans of the banking sector rose by a massive Rs 1.39 lakh crore to Rs 10.25 lakh crore in March 2018 quarter. Thereby in the nine-months ending December 2018, the gross NPAs of the banking sector fell by Rs 59,000 crore in total and during the same period net NPAs of these banks declined by a whopping Rs 99,151 crore due to higher provisioning for bad loans.

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History of this topic

Banks bad loans seen worsening by 2026 says RBI
2 months, 3 weeks ago

Banks bad loans seen worsening by 2026 says RBI

Deccan Chronicle  

Mumbai: Indian banks' gross bad loan ratio may rise from a 12-year low if risks emanating from credit quality, interest rates and geopolitics play out, the Reserve Bank of India said in its December Financial Stability Report published on Monday. This key measure could rise to 3 per cent by the end of March 2026 from a 12-year low of …

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 …

EXPLAINED: Where India Stands On Cryptocurrencies, What New Bill Will Mean For Bitcoin And Company
3 years, 4 months ago

EXPLAINED: Where India Stands On Cryptocurrencies, What New Bill Will Mean For Bitcoin And Company

News 18  

Another of the notorious price swings cryptocurrencies are known for was underway amid news that the Centre is set to introduce a Bill in Parliament that seeks to crack down on these unregulated assets in India, which has one of the largest crypto-ownership bases in the world. Reports suggest that the cryptocurrency Bill missed out on introduction in Parliament during …

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, …

Future of cryptocurrency in India continues to hang in the balance
3 years, 9 months ago

Future of cryptocurrency in India continues to hang in the balance

The Hindu  

June 02, 2021 10:30 am | Updated June 03, 2021 12:48 pm IST The Reserve Bank of India on May 31 asked banks not to cite its 2018 order as a reason to deny banking services to customers who dealt in cryptocurrencies. In April 2018, the RBI issued a circular instructing banks to make sure customers dealing in cryptocurrencies were …

RBI Circular on Cryptocurrency Clarifies No Ban in India: Will UPI, Online Payments Return?
3 years, 9 months ago

RBI Circular on Cryptocurrency Clarifies No Ban in India: Will UPI, Online Payments Return?

News 18  

Yesterday, on May 31, the Reserve Bank of India issued a circular that offered some clarification towards the official state of cryptocurrencies in India. After widespread reports claimed that both private and public sector banks have been actively advising users against investing in cryptocurrencies, while withdrawing payment support for Indian crypto trading platforms, the RBI circular underlined that banks can …

Banks can no longer cite RBI note to throttle crypto
3 years, 9 months ago

Banks can no longer cite RBI note to throttle crypto

Live Mint  

The Reserve Bank of India on Monday clarified that its 2018 order directing lenders to stop dealing in virtual currencies was quashed by the Supreme Court in March last year and can’t be cited by banks to deny services to people dealing in cryptocurrencies. The clarification came after lenders such as HDFC Bank Ltd and State Bank of India cautioned …

Whether The Circular Issued By The RBI Dated 27.03.2020 Whereby It Allowed Banks To Grant Moratorium On Payment Of Loan Instalments To Its Customers Is Mandatory, Directory Or Discretionary
4 years, 7 months ago

Whether The Circular Issued By The RBI Dated 27.03.2020 Whereby It Allowed Banks To Grant Moratorium On Payment Of Loan Instalments To Its Customers Is Mandatory, Directory Or Discretionary

Live Law  

Courtesy the present pandemic, financial difficulties are hurting industries across all sections. In order to ease out such a daunting situation, the RBI vide its circular dated 27th March 2020 had allowed banks and financial institutions to grant to its customers a moratorium of three months on payment of all loan installments falling due between March 1st, 2020 and May …

SC Commences Hearing On Pleas Against RBI Circular Banning Cryptocurrency
5 years, 7 months ago

SC Commences Hearing On Pleas Against RBI Circular Banning Cryptocurrency

Live Law  

The Supreme Court Thursday commenced final arguments on a batch of pleas challenging a Reserve Bank of India circular prohibiting banks and financial institutions from providing services in relation to cryptocurrencies.Cryptocurrencies are digital currencies, in which encryption techniques are used to regulate the generation of the currency units and verify the transfer of funds,. The Supreme Court Thursday commenced final …

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 withdraws circular asking banks to declare exposure to crisis-hit IL&FS
5 years, 10 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 …

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 …

SC's RBI Circular judgment: A Treatise On Interpretation Of Statutes
5 years, 11 months ago

SC's RBI Circular judgment: A Treatise On Interpretation Of Statutes

Live Law  

The recent Supreme Court judgment on the RBI circular dated 12th February 2018 is a treatise on the subject of interpretation of statutes. The Supreme Court, however, held in its 84-page judgment that the circular is ultra vires of Section 35AA of the Banking Regulation Act and that RBI had no powers to issue such an order under the current …

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 …

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 …

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 …

No dilution on Feb 12 circular over stressed assets: RBI
6 years ago

No dilution on Feb 12 circular over stressed assets: RBI

Live Mint  

The Reserve Bank of India Saturday maintained that there is no dilution in its stand with regard to February 12 circular on stressed assets recognition and resolution. "It is reiterated that the Reserve Bank maintains its stand on all aspects of the Framework as has been consistently articulated in its communications, including the clarification given during the post-monetary policy press …

NPA issue: Will RBI's 12 February circular help expedite bad loan recovery? Signs indicate it is on right path
6 years, 1 month ago

NPA issue: Will RBI's 12 February circular help expedite bad loan recovery? Signs indicate it is on right path

Firstpost  

This smorgasbord of schemes didn’t even dent the NPA problem. In a way, 12 February, 2018 marked the end of an era best characterised by the late J Paul Getty, oil billionaire, who said, “When you owe the bank $100, it’s your problem; when you owe the bank $100 million, it’s the bank‘s problem”. Out of a total of more …

Government-RBI rift: Forcing central bank to give Rs 3.6 lakh cr from cash reserves would jeopardise inflation story
6 years, 4 months ago

Government-RBI rift: Forcing central bank to give Rs 3.6 lakh cr from cash reserves would jeopardise inflation story

Firstpost  

Every year since 2014, the RBI has transferred all the profits it has made to the government It may the first time it has been tried in India, but ‘raiding’ the central bank’s balance sheet and financial resources to meet government spending needs is not uncommon. Now, finance minister Arun Jaitley wants to take Rs 3.6 lakh crore out of …

RBI to FinMin: 12 February circular gives enough space for resolution of bad loans in power sector
6 years, 9 months ago

RBI to FinMin: 12 February circular gives enough space for resolution of bad loans in power sector

Firstpost  

RBI made its stand clear at a stakeholders’ meeting, called by the ministry to discuss the circular, the implementation of which was stayed for the power sector by Allahabad High Court. The Reserve Bank of India on Thursday indicated to the finance ministry that its 12 February circular on new framework for stressed assets provides enough space for resolution of …

SC Asks HCs Not To Entertain Petitions Relating To RBI Circular Prohibiting Virtual Currencies [Read Order]
6 years, 10 months ago

SC Asks HCs Not To Entertain Petitions Relating To RBI Circular Prohibiting Virtual Currencies [Read Order]

Live Law  

The Supreme Court has asked high courts across the country not to entertain any petition relating to the circular issued by the Reserve Bank of India on “Prohibition on dealing in Virtual Currencies’.A bench headed by the Chief Justice of India Dipak Misra issued this order while staying further proceedings pending before Delhi and Calcutta high courts.The court was hearing …

RBI’s new NPA rules may hurt but will drain the swamp
7 years, 1 month ago

RBI’s new NPA rules may hurt but will drain the swamp

Live Mint  

It has been commented, after a fashion, that the Reserve Bank of India ’s new NPA rules are akin to kicking a man while he’s down. The government extended a lifeline with its Rs2.11 trillion bank recapitalisation plan, but even that may have been yanked away because a bad loan pile-up is anticipated with the introduction of these new norms. …

NPA battle: RBI likely to start insolvency proceedings vs Rs 8 lakh cr bad loans by March 2019
7 years, 8 months ago

NPA battle: RBI likely to start insolvency proceedings vs Rs 8 lakh cr bad loans by March 2019

Firstpost  

It is no secret that NPAs are a big drain on the financial health of banks especially public sector banks. 8 lakh crore by March 2019, a move that could bring down the NPAs and improve the financial health of banks, a study by Assocham said. “So, it should be safe to assume that the non-performing assets mess would largely …

Bombay HC Prima Facie Finds Inconsistencies In Two RBI Circulars Regarding Demonetisation
8 years, 4 months ago

Bombay HC Prima Facie Finds Inconsistencies In Two RBI Circulars Regarding Demonetisation

Live Law  

The Bombay High Court has sought the Reserve Bank of India’s response in a petition that challenges a circular issued by the central bank on November 14. More importantly, the division bench headed by Justice AS Oka observed that prima facie there were inconsistencies between the two circulars issued.The primary circular that was issued notifying demonetisation of 500 and 1000 …

Financing deficit is a major concern: RBI
11 years, 8 months ago

Financing deficit is a major concern: RBI

The Hindu  

The Reserve Bank of India has said that non-disruptive financing of the high current account deficit and containing its size within sustainable levels have become key challenges in managing the external sector and especially in mitigating its vulnerability to global shocks. The gross non-performing assets ratio of banks improved to 3.4 per cent as at end-March 2013 from 3.6 per …

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