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Explainer: What lies behind the Insolvency and Bankruptcy Code

The RBI has identified 12 NPA accounts to be taken up under the Insolvency and Bankruptcy Code. Here's a quick look at what the IBC entails.

June 14, 2017 / 03:01 PM IST

The Reserve Bank of India (RBI) Tuesday identified 12 non-performing accounts or assets (NPAs), totaling 25 percent of India's gross NPAs, which can be immediately taken up under the Insolvency and Bankruptcy Code (IBC).

These 12 accounts together constitute Rs 1.9 lakh crore of the nearly Rs 7.7 lakh crore overall gross NPA of the banking system.

The RBI has evaluated the top 500 exposed accounts, partially or wholly classified as NPAs. The criteria for cases referred under IBC are those where exposure is over Rs 5,000 crore and more than 60 percent has been declared as NPA as on FY16 by the lending bank.

What is IBC?