RBI is right

Govt should reconsider its stand on power sector defaults

The Allahabad High Court is set to hear on Monday the Reserve Bank of India (RBI)’s final submissions on a case filed by power companies against its February 12 circular. The circular had mandated that banks should start the insolvency resolution process of large non-performing assets (NPAs) as soon as it became due. The RBI gave 180 days for this resolution process, after which all the unresolved cases were supposed to go through the insolvency proceedings. The cut-off date was March 1, which meant all unresolved accounts would be subject to the process under the Insolvency and Bankruptcy Code (IBC)