Union Finance Minister Arun Jaitley said on Monday that the Reserve Bank of India (RBI) was at “a fairly advanced stage” of preparing a list of borrowers where non-performing assets (NPAs) of public sector banks could be recovered under the Insolvency and Bankruptcy Code.
NEW DELHI
The move, he said, would help beleaguered public sector banks (PSBs) recover part of their NPAs, estimated at over Rs 6 lakh crore.
Jaitley’s remarks came after a meeting with the heads of PSBs who took stock of problems affecting the lenders.
“Under the new Ordinance, RBI is at a fairly advanced stage of preparing a list of those debtors where a resolution is required through the Insolvency and Bankruptcy Code (IBC) process. You will be shortly hearing about it,” he said.
The Centre issued an Ordinance last month empowering the RBI to recover mounting NPAs of state-owned banks allowing it to initiate insolvency resolution proceedings for bankruptcy code cases and recover bad loans.
About 81 cases have already been filed under the Code. Out of these 18 cases have been initiated by financial creditors.
