Reserve Bank of India (RBI) announced a complete overhaul for a resolution of the stressed assets aka Non Performing Assets (NPAs). The RBI has withdrawn existing norms, such as, Corporate Debt Restructuring (CDR) Scheme, Joint Lenders' Forum (JLF), and Strategic Debt Restructuring Scheme (SDR).
The new resolution includes the following key points:
The RBI's new move is definitely a good take. With the withdrawal of old norms and framing new ones in a speedy and effective way for the NPA structure might pose a pressure on banks, but on a broader perspective, the move should be welcomed.