(LiveMint)
The Reserve Bank of India (RBI) 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. The RBI will take steps in light of the court order, including issuance of a revised circular, for expeditious and effective resolution of stressed assets, Das said after announcing the first bi-monthly policy of FY20.
“The RBI stands committed to maintain and enhance the momentum of resolution of stressed assets and adherence to credit discipline,” he said. The order of the Supreme Court mandates RBI to exercise its powers under Section 35AA of the Banking Regulation Act in respect of specific defaults by specific debtors, Das said. The powers of RBI, he said, under Section 35AA and other sections of the Act are not in doubt at all. “What basically the Supreme Court has said is that the powers of RBI under Section 35AA have to be exercised in a particular manner and the validity of the Section stands and henceforth we have to comply with the directions of the Supreme Court in this regard and act accordingly,” said Das.
