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 which debtors have been proceeded against by financial creditors under Section 7 of the Insolvency Code…are declared to be non-est.” According to Anil Gupta, Sector Head at ICRA, “Banks have made provisions of over 25-40 per cent on these accounts and hence quashing of the RBI circular should not impact the reported asset quality or profitability numbers, however the resolution process, which was expected to be expedited, may get delayed. Despite quashing of the circular, banks will continue to have an option to refer such defaulting borrower under IBC, in case the resolution plans fail.” State Bank of India Chairman Rajnish Kumar told a news channel that the SC’s decision will not change the credit culture.

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History of this topic

Beware credit card holders! There is bad news for you in this Supreme Court ruling
3 months ago

Beware credit card holders! There is bad news for you in this Supreme Court ruling

Live Mint  

Beware credit card holders: In a verdict that will impact lakhs of credit card holders in India, the Supreme Court on December 20 overturned a 2008 National Consumer Disputes Redressal Commission judgment capping credit card interest rates at 30% annually on late bill payments. Supreme Court lifts 30% cap on late credit card payments: Implications for Banks The Supreme Court's …

Supreme Court overrules consumer forum’s 30% interest rate cap on late credit card payments
3 months ago

Supreme Court overrules consumer forum’s 30% interest rate cap on late credit card payments

Live Mint  

The Supreme Court has overruled a 2008 decision by the National Consumer Disputes Redressal Commission that capped the interest rate banks could charge on late credit card bill payments at 30% per annum, bringing relief to banks. In 2008, the NCDRC had ruled that charging credit card holders interest rates in excess of 30% per annum for failing to make …

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 …

Supreme Court Issues Notice On RBI Appeal Against Kerala HC Order That Lifted Loan Restrictions Imposed On Co-Operative Bank
1 year, 7 months ago

Supreme Court Issues Notice On RBI Appeal Against Kerala HC Order That Lifted Loan Restrictions Imposed On Co-Operative Bank

Live Law  

The Supreme Court on Friday issued notice to in an appeal filed by the Reserve Bank of India, against an order of the Kerala High Court that lifted the loan restrictions imposed by it on Thiruvalla East Co-Operative Bank Ltd. A division bench of the Kerala High Court had affirmed the order of a single bench that lifted the restriction …

Bombay HC stays RBI circular allowing banks to declare fraud accounts without hearing
1 year, 9 months ago

Bombay HC stays RBI circular allowing banks to declare fraud accounts without hearing

India Today  

The Bombay High Court, on Monday, put an interim stay on the effect of the master circular issued by the Reserve Bank of India in 2016 that allows public sector and commercial banks to declare any account as a fraudulent account without a hearing. During the hearing, the bench stayed the effect of the 2016 RBI master directions on the …

RBI Didn't Independently Apply Its Mind In Recommending Demonetisation, Entire Exercise Carried Out In 24 Hours : Justice BV Nagarathna
2 years, 2 months ago

RBI Didn't Independently Apply Its Mind In Recommending Demonetisation, Entire Exercise Carried Out In 24 Hours : Justice BV Nagarathna

Live Law  

In her dissenting judgment in the pleas challenging demonetisation, Supreme Court judge Justice BV Nagarathna observed that there was no independent application of mind by the Reserve Bank of India in recommending the cancellation of entire Rs.500 and Rs.1000 notes as proposed by the Central Government.Justice Nagarathna formed this opinion after referring to the records relating to the. In her …

Indian Insolvency Yearly Review 2022
2 years, 2 months ago

Indian Insolvency Yearly Review 2022

Live Law  

In recent years, several noteworthy judgments have been rendered by the Indian Courts in matters pertaining to the law of insolvency in India and in particular the Insolvency and Bankruptcy Code, 2016. The Supreme Court observed that the adjudicating authority is vested with discretionary power under Section 7 of the IBC to accept or reject the financial creditor's application. On …

Supreme Court directs Centre, RBI to submit records behind demonetisation decision
2 years, 3 months ago

Supreme Court directs Centre, RBI to submit records behind demonetisation decision

The Hindu  

The Supreme Court on December 7 directed the Centre and the RBI to place on record the “relevant records” relating to the government’s 2016 decision to demonetise currency notes of ₹1,000 and ₹500 denomination for its perusal. Reserving its verdict on a batch of pleas challenging the Centre’s decision, a five-judge Constitution Bench headed by Justice S.A. Nazeer heard the …

Judicial Service Examination: Questions With Explanatory Answers Based On Latest Supreme Court Judgments
2 years, 3 months ago

Judicial Service Examination: Questions With Explanatory Answers Based On Latest Supreme Court Judgments

Live Law  

Which of the following is true with respect to the decision in the 2020 judgment of Tofan Singh v. State of Tamil Nadu? a. NDPS officers are not police officers since they do not file any charge-sheet b. NDPS officers are police officers but confessional statements recorded by them are admissible c. NDPS officers are police officers and therefore confessional …

"RBI Officials Involved In Scams Like Kingfisher, Yes Bank", Alleges Subramanian Swamy; Supreme Court Issues Notice On Plea For CBI Probe
2 years, 5 months ago

"RBI Officials Involved In Scams Like Kingfisher, Yes Bank", Alleges Subramanian Swamy; Supreme Court Issues Notice On Plea For CBI Probe

Live Law  

A Division Bench of the Supreme Court of India on Monday issued notice on a writ petition filed by Dr Subramanian Swamy seeking an enquiry by the Central Bureau of Investigation into the role of Reserve Bank of India officials in various banking scams. Gavai and B.V. Nagarathna that the RBI officials had allegedly escaped scrutiny with respect to their …

Supreme Court Directs Rupee Co-op Bank's Appeal Against Cancellation Of Its License To Be Decided By October 31
2 years, 5 months ago

Supreme Court Directs Rupee Co-op Bank's Appeal Against Cancellation Of Its License To Be Decided By October 31

Live Law  

The Supreme Court recently ordered that the stay granted by the Bombay High Court against the Reserve Bank of India's order cancelling the license granted to Rupee Co-Op Bank will stand restricted till October 31, 2022. The Top Court also directed that the appellate authority under Section 22 of the Banking Regulation Act 1949 shall take up the appeal for …

Public Sector Banks Can Seek Look Out Circulars Against Defaulters Only If Detrimental To Economic Interest Of India: Kerala High Court
2 years, 6 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 …

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 …

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

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 …

Supreme Court Refuses To Stay RBI Notices To Bank Under RTI To Disclose Information
3 years, 8 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 …

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 …

Supreme Court waives compound, penal interests on loans during moratorium
3 years, 11 months ago

Supreme Court waives compound, penal interests on loans during moratorium

Hindustan Times  

The Supreme Court on Tuesday ordered banks against charging borrowers any penal interest or compound interest on loans during the moratorium on repayment of loans from March to August 2020 in view of the Covid-19 pandemic. The court refused to extend the moratorium or tinker with the resolution mechanism proposed by Reserve Bank of India to waive compound interest on …

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 …

"Their Diwali Is In Your Hands": SC Seeks Centre's Response On Implementation Of Benefits To Small Borrowers By November 2
4 years, 5 months ago

"Their Diwali Is In Your Hands": SC Seeks Centre's Response On Implementation Of Benefits To Small Borrowers By November 2

Live Law  

The Supreme Court on Wednesday pulled up the Centre as for its delay in implementation of their decision for providing benefits to small borrowers who had taken loans of up to 2 Crores.A bench comprising Justices Ashok Bhushan, R Subhash Reddy and MR Shah told the Centre that even though it had welcomed its decision of relieving the smaller borrowers, …

Relief for borrowers in moratorium case
4 years, 6 months ago

Relief for borrowers in moratorium case

The Hindu  

The Supreme Court on Thursday directed banks that loan accounts on the clear till the expiry of the moratorium on August 31 should not be declared as non-performing assets till further orders. A Bench led by Justice Ashok Bhushan spelt relief for borrowers struggling to gain their feet amid a pandemic with its one-liner that “accounts which were not declared …

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 …

Loan moratorium: Supreme Court directive to Centre, RBI
4 years, 9 months ago

Loan moratorium: Supreme Court directive to Centre, RBI

The Hindu  

The Supreme Court on Tuesday directed the Central government and the Reserve Bank of India to file their formal response to a petition challenging the charging interest rate on loans even during the three-month moratorium declared amid the COVID-19 pandemic and national lockdown. The petitioner, Gajendra Sharma, said though there was a moratorium on loans, there is also accrual of …

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 …

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 …

Supreme Court On Crypto Currency Notification: What Lies Ahead
5 years ago

Supreme Court On Crypto Currency Notification: What Lies Ahead

Live Law  

Introduction As the blockchain enthusiasts, the exchanges dealing with Crypto Currencies and individuals holding CCs, across the globe watched in approbation, The Supreme Court of India, in the matter of Internet and Mobile Association of India vs Reserve Bank of India, Writ Petition No. However, yet the RBI has wide powers under Section 35A of the Banking Regulation Act, 1949 …

Opinion | A judgement that balances power and proportionality
5 years ago

Opinion | A judgement that balances power and proportionality

Live Mint  

In a judgement on Wednesday spanning elements as diverse as Vedic philosophy and cypherpunks, Jain parables and the history of central banking, the Supreme Court set aside a circular issued by the Reserve Bank of India banning entities regulated by it from dealing in virtual currencies. Rich with details on the character of virtual currencies and their manner of regulation, …

SC lifts total ban on cryptocurrency trade; quashes 2018 RBI circular banning banks from providing services
5 years ago

SC lifts total ban on cryptocurrency trade; quashes 2018 RBI circular banning banks from providing services

Firstpost  

According to the 6 April 2018 circular, the entities regulated by the RBI are prohibited from “providing any service in relation to virtual currencies. The Supreme Court on Wednesday lifted complete ban on cryptocurrency trade and quashed the 2018 circular of the Reserve Bank of India which had prohibited banks and financial institutions from providing services with relation to cryptocurrencies. …

Supreme Court sets aside RBI ban on cryptocurrency transactions
5 years ago

Supreme Court sets aside RBI ban on cryptocurrency transactions

The Hindu  

The Supreme Court on March 4 set aside an April 6, 2018, circular of the Reserve Bank of India prohibiting banks and entities regulated by it from providing services in relation to virtual currencies. “Till date, RBI has not come out with a stand that any of the entities regulated by it namely, nationalised banks/scheduled commercial banks/cooperative banks/NBFCs, have suffered …

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 …

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 …

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 …

Points of conflict
5 years, 10 months ago

Points of conflict

The Hindu  

The story so far: On April 26, the Supreme Court directed the Reserve Bank of India to disclose to the public the names of wilful defaulters on loans and also other information gathered by the central bank during its annual inspection of commercial banks. In January 2016, the RBI refused to comply with demands made by activists under the Right …

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 …

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 …

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 …

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