RBI framework on stressed asset resolution
The Reserve Bank of India (RBI) released a ‘Framework for Revitalising Distressed Assets in the Economy’ on 30 January 2014 which sets out guidelines for the early recognition of financial distress, taking prompt steps for resolution and ensuring fair recovery for lending institutions. The new framework reiterates the RBI’s focus on putting assets to work and incentivising the speedy resolution of NPA or NPA like exposures in the banking system and also introduces a set of structural reforms such as the setting up of the Central Repository of Information on Large Credits (CRILC) to facilitate the dissemination of information on large credits. It also lays emphasis on the co-ordination of lender actions through the establishment of Joint Lenders’ Forums within the lending system.
© 2017 KPMG, an Indian Registered 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 has launched a state of the art digital platform that enhances your experience and provides improved access to our content and our people, whatever device you are on.