We have a great central banking system in our country which is the Reserve Bank of India, which have certain paramount functions such as issuing currency, monitoring the banking system has come under these functions. Recently, we all know that our country had gone through the demonization of circulating currency then next the new one was released by the RBI. RBI dealing not only with the issuing of currency but also they dealing with the monitoring of the banking system as well. Recently it releases certain norms and regulations for the recollecting the bad loans approved by the banks. They released a new guideline in the circumstance of the apex court rejected the previous one.
They ordered that they should review the accounts within a time span of 30 days and should found a resolution plan. They need to submit weekly report as well on this issue which is above or equal to the amount of 5 crores.
The lenders aka Banks should find the stresses accounts in loans which is in an immediate effect as default and categorised these kind of accounts.
They are expecting that the banks should takes necessary steps regarding this before the issuing of the notifications.
They need to report the borrowing details who lend the money above 5 crore.
They can opt the Inter-Creditor agreement.
Those with more lenders, ICA deliver rules for finalisation and implementation.
The more stressed accounts of lenders should go through the high penalty.
Joint lenders Forum is one of the obligatory machinery for the resolution for this.
Where the Reserve Bank is satisfied that—
(a) in the 178 [public interest]; or
179 [(aa) in the interest of banking policy; or]
(b) to prevent the affairs of any banking company being conducted in a manner detrimental to the interests of the depositors or in a manner prejudicial to the interests of the banking company; or
(c) to secure the proper management of any banking company generally,
it is necessary to issue directions to banking companies generally or to any banking company in particular, it may, from time to time, issue such directions as it deems fit, and the banking companies or the banking company, as the case may be, shall be bound to comply with such directions.
(2) The Reserve Bank may, on representation made to it or on its own motion, modify or cancel any direction issued under sub-section (1), and in so modifying or cancelling any direction may impose such conditions as it thinks fit, subject to which the modification or cancellation shall have effect.] . Lawyers in India can help you for more details.
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