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RBI issues new prudential framework for resolution of stressed assets

June 10, 2019
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The RBI has issued new prudential framework for resolution of stressed assets on Jun 07, 2018, replacing its controversial 12 February 2018 circular after it was quashed by Supreme Court. Under the revised norms, the RBI has now made it voluntary for lenders to take defaulters to the bankruptcy court; the framework now applies to a larger universe of lenders, which includes small banks and NBFCs; and penal provisions have also been introduced for lenders.
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