Revised NPA norms

Revised NPA norms

RBI vide its circular dated February 12, 2018 has revised its guidelines for resolution of stressed assets to harmonise them with IBC. The guidelines require the lenders to identify the any stress indication in loan accounts, including a one day delay, and classify them as special mention accounts (SMA) based on the overdue period. Lenders shall report credit information on all borrower entities having aggregate exposure of Rs 5 crore and above. Lenders shall also put in place policies for resolution of stressed assets including any reorganization or regularisation of the account by payment of all overdue by the borrower.