RBI overhauls stressed asset framework, gives 180 days for NPA resolution

Matter to be referred to Insolvency Board within 15 days

The Reserve Bank of India (RBI) on Monday precluded chances of banks reporting divergent asset classification norms on the same account by stating that if in a consortium a bank faced default, others must start taking action to recover the dues.

This is part of a revised framework on resolving stressed accounts, put up late on Monday night on the RBI website. 

The framework did away with many existing guidelines on stressed accounts while simplifying them under a single code. This means the RBI’s existing norms on Scheme for Sustainable Structuring of Stressed Assets (S4A), ownership norms on stressed accounts,