In the first round, the RBI had used a benchmark criteria based on which the 12 firms had been identified. As per the criteria, all large corporate accounts with fund and non-fund based exposure of Rs 5,000 crore and above each, and where more than 60 percent of the loans had turned bad as on March 31 last year, would qualify for insolvency proceedings.
At the time, the RBI had warned that another set of companies may need to be referred for insolvency at a later stage.
As regards the other non-performing accounts which do not qualify under the above criteria, the IAC recommended that banks should finalise a resolution plan within six months. In cases where a viable resolution plan is not agreed upon within six months, banks should b…
Read the full article at: https://www.bloombergquint.com/law-and-policy/2017/08/29/rbi-sends-second-list-of-cases-to-banks-for-insolvency-action
