Rs 3 lakh crore loans to come under Insolvency and Bankruptcy Code

As much as Rs 3 lakh crore worth of loans might come in for resolution under the Insolvency and Bankruptcy Code (IBC).  According to RBI’s circular, released on February 12 over restructuring bad loans had mandated banks to take loan accounts which remain unresolved for over 180 days, to the National Company Law Tribunal (NCLT) under the IBC.

“The RBI has not provided any relaxation on the February 12 circular despite submissions from the government and industry. While banks have worked on resolution in some cases in the intervening period, a large number of cases still needs to be pushed to the NCLT,” a senior banker told.