Bankers brace for hitches and legal battles over RBI action on defaulters

Bankers are bracing for hitches at the NCLT

Even as the central bank has identified 12 large accounts for bankruptcy proceedings and directed lenders to work on a resolution process for 500 more, bankers say the system is not ready for effective resolution. 

Bankers are bracing for hitches at the National Company Law Tribunal (NCLT) as the process evolves under the new system. For example, there are not enough insolvency professionals and, no information utility company which houses all the credit data of borrowing firms and can be used in a bankruptcy proceeding.

The 12 cases handled by the central bank would be expedited, but some gaps need