Mumbai: The central bank has called for strengthening the infrastructure at the National Company Law Tribunals (NCLT) to ensure time-bound resolution of stressed-asset loans in the banking sector, where the problem of mounting bad debt has prompted curbs on the normal operations at several high-street lenders.
In its Trends and Progress in Banking for 2017-18 released on Friday, the Reserve bank of India (RBI) underscored the need to strengthen the NCLT infrastructure to accommodate the likely large number of cases that may be referred to the dedicated bankruptcy courts.
Better resolution will also have a bearing on the future of the loan repayment culture in India, where the Insolvency and Bankruptcy Code (IBC) was enacted in December 2…
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