Wednesday, December 18, 2013

Give incentives to banks for timely taming of NPAs: RBI paper

.......In a discussion paper on non-performing assets management, the RBI proposed "early formation of a lenders' committee with timelines to agree to a plan for resolution", among other aspects. Lenders coming together to salvage an account timely and collectively shall be incentivised through "better regulatory treatment of stressed assets", while in cases where a resolution agreement cannot be reached, there shall be accelerated provisioning, the discussion paper said..........

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