Reserve Bank of India (RBI) today issued a new circular to resolve the trapped debt. Earlier, the Supreme Court had canceled its circular issued on February 12, 2019. Canceled by the Supreme Court on 12th April In that circular RBI has delayed the repayment of a loan of Rs 2000 crore or more for the banks, but it is mandatory to start a settlement process or restructuring of loans. Had done it.
Now the mandatory requirement of one-day payment default has been abolished in the new circular and it has been said that if the loan repayment of Rs 2,000 crore or more is delayed, then the bank will review the loan account within 30 days and loan Before the default, start the resolution plan. RBI today said banks should follow the policy approved by their board for the resolution of bad loans.
