Bad debt woes: RBI set to take driver's seat in banks' fight against NPAs

Central bank likely to keep tabs on large wilful defaulters; policy likely by month-end

The Reserve Bank of India (RBI) will likely find itself in the driver’s seat in the war against bad debt — closely monitoring big-ticket restructuring and even getting to decide the haircut to be taken by banks.

These and other changes could be introduced by the end of this month by the government, formulated after a series of meetings between the central bank and finance ministry officials.  

As banking regulator, RBI doesn’t, as a rule, get directly involved in individual accounts. It issues broad guidelines that apply to everyone.

The new strategy was discussed in meetings between the finance