Reserve Bank of India (RBI) to issue revised NPA circular in 3-4 days

Mumbai: Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday said the RBI will issue a new circular on non-performing assets (NPAs) in three to four days.

The circular is likely to set new norms and bring clarity over classification of companies as NPAs.

The apex court had on April 2 struck down RBI's February 12 circular whereby the central bank had mandated lenders to initiate resolution or restructuring of loans worth Rs 2,000 crore or more even if the default was recorded for a single day.

Addressing the media after the monetary policy meeting, the Governor noted that it had taken the apex bank more than anticipated time for coming out with a revised circular on bad loans.

“It has taken a little more time than we had originally anticipated but it will be issued very shortly. Very shortly means, in a matter of next three or four days.”

Das added: “It involved examining various legal issues, it involved very detailed and wide ranging stakeholder consultations, and internally we had to examine it in detail.” (IANS)

Also Read: Business News