RBI releases guidelines relating to framework on stressed asset resolution
The Reserve Bank of India (RBI) had on 30 January 2014, released a ‘Framework for Revitalising Distressed Assets in the Economy’ effective from 1 April 2014, which laid down guidelines for early recognition of financial distress, taking prompt steps for resolution and thereby ensuring fair recovery for lending institutions (refer First Notes edition dated 31 January 2014). For operationalising this framework, the RBI has vide two notifications dated 26 February 2014, released detailed guidelines on refinancing of project loans, sale of NPAs by banks and other regulatory measures and on formation of joint lenders’ forum (JLF) and adoption of corrective action plan (CAP).
© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.
KPMG (Registered) (a partnership firm with Registration No. BA- 62445) converted into KPMG Assurance and Consulting Services LLP (a Limited Liability partnership firm) with LLP Registration No. AAT-0367 with effect from July 23, 2020.