RBI announces new framework to tackle bad loan problem

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New Delhi: The Reserve Bank of India, on February 12, said it was withdrawing all its existing mechanisms for tackling bad debt at Indian banks and replacing them with a harmonized and simplified generic framework for resolving stressed assets.
The new system will force lenders to identify and tackle any stressed-asset accounts more rapidly, the regulator said.
Last year, India tweaked its laws to give the central bank more authority to push lenders to deal with the nearly $150 billion in troubled debt at banks, which has choked off new lending and slowed the economy.

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