Reserve Bank of India has issued a revised framework for expeditious resolution of bad loans, harmonising the existing guidelines with the norms specified in the Insolvency and Bankruptcy Code (IBC). The new guidelines have specified framework for early identification and reporting of stressed assets.
In a notification issued in Mumbai on Monday evening, RBI said, in view of the enactment of the Insolvency and Bankruptcy Code, it has been decided to substitute the existing guidelines with a harmonised and simplified generic framework for resolution of stressed assets. Among other things, the RBI has decided to do away with the Joint Lenders’ Forum (JLF) as an institutional mechanism for resolution of stressed accounts also stands discontinued.
The notification further said, all accounts, including those where any of the schemes have been invoked but not yet implemented, will be governed by the revised framework.