NEW DELHI: The Reserve Bank of India (RBI) has shot down suggestions of a fresh suspension of the Insolvency & Bankruptcy Code (IBC) due to the second wave of Covid-19, while making it clear that banks can still restructure distressed but viable loans, ensuring that their balance sheets remain transparent.
During initial discussions with the government, RBI has indicated a freeze will not help anyone in the long run as it will only show lower level of non-performing assets (NPAs), government sources told TOI. The government has not completely shut the door on the issue but the regulators reluctance will certainly weigh on the decision.
Last year, RBI went along with the government decision to suspend IBC provisions for six months, whi…
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