As of now, these norms are meant for only scheduled commercial banks, excluding regional rural banks.
Writing-off a loan doesn’t mean that the borrower is no longer liable to make the repayment. It is an accounting practice done for cleaning up the balance sheets of banks.
S&P Global Ratings has said that Non-performing assets in the Indian banking sector are likely to witness an uptick and may shoot up to 11 percent of gross loans in the next 12-18 months. What does this mean for the banking system? Let's find out
The framework will authorise the lead bank to implement a resolution plan in 180 days and the leader would then prepare a resolution plan including empanelling turnaround specialists and other industry experts for operation turnaround of the assets within RBI's stipulated time-frame of 180 days.
The advisor also said that the government has various options in mind to sort out the banking mess, including recapitalization and diluting the government’s stake
Fiscal situation, external sector environment, financial sector reforms, rising non-performing assets and regulatory issues are likely to figure in the meeting.
Reserve Bank Governor Raghuram Rajan today said there is a "respectful relationship" between the RBI and the government though the onus of taking monetary policy decision rests with the central bank