RBI to soon name 12 identified defaulters
New Delhi: The Finance Ministry on Wednesday said names of the 12 big defaulters identified by the RBI for initiation of bankruptcy proceedings will soon be made public.
The RBI yesterday said it has identified 12 large loan defaulters who account for 25 per cent of the total NPAs in the banking sector and those will be referred to respective banks for filing insolvency proceedings. These cases will be accorded priority by the National Company Law Tribunal (NCLT).
The Finance Ministry further said that NCLT was being strengthened to fast track bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC).
Each of the defaulters identified by RBI owes over Rs 5,000 crore to banks.
The banking sector is saddled with non-performing assets (NPAs) of over Rs 8 lakh crore, of which Rs 6 lakh crore is with public sector banks (PSBs).
The IBC provides for 180 days for completion of insolvency process which can be extended by another 90 days in special cases.
Economic Affairs Secretary Tapan Ray said most of the regulations of IBC are in place since December and the required infrastructure is ready to handle cases.
For cases under IBC, the NCLT is the adjudicating authority. The NCLT was set up on June 1, 2016. It has 10 benches in India.
RBI action follows government promulgating an ordinance to fast track resolution of non-performing assets.
The Finance Ministry’s economic advisor also said that resolution of bad loans would also help government to arrive at a more appropriate amount required by PSU banks towards their capitalisation.
Replying to queries on mergers among PSU banks, Sanyal said there will be some consolidation, but “that is being done on commercial basis and are on advanced basis”.
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Source:Zee news
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