(LiveMint)
The Reserve Bank of India (RBI) seems to have ruled out relaxations in its new bad loan rules. RBI deputy governor N.S. Vishwanathan defended the rules announced in February, saying that they were aimed at improving credit culture and nudging lenders to be proactive in tackling early signs of stress.
The new bad loan rules stipulate that starting 1 March, lenders must implement a resolution plan within 180 days for loan accounts of at least Rs2,000 crore, failing which the defaulting borrowers must be referred to insolvency courts. They also mandate banks to report defaults weekly to RBI, even if loan payments are delayed by a day.
