RBI may allow 66% lenders' approval for resolution of stressed assets

The Reserve Bank of India (RBI) may lower the approval threshold in its revised circular for the resolution of stressed assets to 66 per cent of lenders by value from the current level of 100 per cent.

The central bank is also expected to detail the mechanism for the buyout of exposure from banks which are not in agreement with the majority of lenders on the resolution plan, third-party security and additional funding.

The original February 12, 2018, circular was explicit that resolution plans should be drawn up on unanimous approval by all lenders. While the Indian Banks’ Association (IBA)