TOPIC
Bad loans
Big loan defaulters could soon be facing music as RBI plans to use insolvency laws
Reserve Bank of India is planning to use insolvency laws against the big loans defaulters.
RBI identifies 12 accounts responsible for 25% of bad loans
Defaulters have not been named, but banks will be asked to initiate insolvency proceedings to recover the dues.
Cabinet approves ordinance that gives teeth to RBI to recover bad loans
The move will empower the central bank to act on behalf of other banks against wilful defaulters.
