The Reserve Bank of India has advised banks to file for insolvency proceedings on their own rather than waiting for its instructions. The regulator has said that prompt action by lenders will help realise best value of these stressed assets. The RBI in its report on trends and progress in the banking industry has also said that lenders should use the insolvency and bankruptcy code to mend the quality of their books.
“Banks can take advantage of the IBC to clean up their balance sheets and improve performance on a sustained basis to remain competitive,” the regulator said. “Instead of waiting for regulatory directions, banks can file for insolvency proceedings on their own to realise promptly the best value for their assets.”…
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