Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday said the RBI will issue a new circular on non-performing assets (NPAs) in three to four days.
The circular is likely to set new norms and bring clarity over classification of companies as NPAs.
The apex court had on April 2 struck down RBI’s February 12 circular whereby the central bank had mandated lenders to initiate resolution or restructuring of loans worth Rs 2,000 crore or more even if the default was recorded for a single day.
Addressing the media after the monetary policy meeting, the Governor noted that it had taken the apex bank more than anticipated time for coming out with a revised circular on bad loans.
“It has taken a little more time than we had originally anticipated but it will be issued very shortly. Very shortly means, in a matter of next three or four days.”
Das added: “It involved examining various legal issues, it involved very detailed and wide ranging stakeholder consultations, and internally we had to examine it in detail.”
After the previous monetary policy meet in April, Das had told reporters that the central bank will take necessary steps including the issuance of a revised circular “as may be necessary for the effective resolution of stressed assets”.
The Supreme Court’s April 2 order raised questions over the fate of about eight power projects including the 3,600 MW KSK Mahanadi Power Co Ltd, 1,920 MW Lanco Amarkantak Power Ltd, 600 MW Avantha Power, 1,350 MW Rattan India Power Ltd, 550 MW RKM Powergen and 700 MW Bharat Utkal.
These projects were referred by a consortium of lenders including the Power Finance Corp to the NCLT as per the provisions of the February 12 RBI circular, which said it would be mandatory for projects in default to be referred to the NCLT after 180 days from start of the resolution period.
As 180 days for these projects ended in August, they were referred to the NCLT.