MUMBAI: The Reserve Bank of India (RBI) is understood to be weighing a plan to incentivise lenders to take errant borrowers to bankruptcy court.
Its part of the regulatory countermove that RBI is working on to overcome hurdles in the wake of a recent Supreme Court ruling. A month ago, the apex court struck down RBIs February 12, 2018 directive that gave defaulting companies 180 days to agree on a resolution plan with lenders or be taken to bankruptcy court to recover debt of Rs 2,000 crore and above.
According to people aware of the matter, RBI is considering a proposal to assign a lower risk weight on loans to companies against which action has been initiated under the Insolvency & Bankruptcy Code (IBC) of 2016.
A lower risk weight woul…
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