Mumbai: The RBI on Thursday said it will come out with a revised circular on resolution of stressed assets "within the next three-four days". On April 2, the Supreme Court had quashed the RBI’s stringent, February12, 2018 circular on resolution of stressed assets as ‘ultra vires’.
Speaking to reporters at the policy review, RBI Governor Shaktikanta Das said, "A revised circular (over the February 12 circular) will be issued very shortly. Very shortly means, in a matter of, may be, next three or four days."
"It has taken more time than we anticipated because it involved examining various legal issues and wide-ranging stakeholder consultations," Das added.
The Feb. 12 circular had directed lenders to refer loan accounts of over Rs 2,000 crore for proceedings under the Insolvency and Bankruptcy Code (IBC) if they were not resolved within 180 days of default. Banks had to treat a company as a defaulter even if it missed the repayment schedule by even a day.
The SC had declared the RBI’s Feb. 12 circular as ultra vires of Section 35AA of the BR Act. The circular revoked all previous restructuring schemes, including corporate debt restructuring scheme (CDR), strategic debt restructuring scheme (SDR) and scheme for sustainable structuring of stressed assets (S4A) approved by the RBI and allowed borrowers a window of 180 days to resolve their stressed accounts.
The SC had clarified that the Centre has to authorise the RBI to issue direction to banks/non-banks if it were an insolvency case.