NPAs to increase as RBI announces new guidelines

     Written by : SMTV24x7 | Thu, Feb 15, 2018, 01:10 PM

NPAs to increase as RBI announces new guidelines

Mumbai Feb 15: In a move to ensure that NPA crisis is solved in a timebound manner the Reserve Bank of India RBI had overhauled the existing framework of dealing with NPA and stressed assets.

The Reserve Bank of India had announced that all loan defaults must be resolved in 180 days or Insolvency proceedings must be initiated within 15 days.

Experts have hailed the move and they said that this move would ensure that health of the banks would be improved in a longterm However they cautioned that the health of banks would be at risk in short term.

Sources said that NPAs amount rise in coming quarters because of the announced measures and the banks need more capital for resolution of the assets. Currently, banks are under huge pressure as the major loans defaults have not yet been resolved and they are under NCLT.