Out by sources;RBI issues clarification on S4A norms for NPAs to banks
Out by sources;RBI issues clarification on S4A norms for NPAs to banks
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The Reserve Bank of India has subjected an explanation with respect to norms of its Scheme for Sustainable Structuring of Stressed Assets which permits bankers to reorganize debt of companies in defaulting.

Sources close to RBI informed, “Banks will now be allowed to waive accrued penal interest according to their own policy. This interest need not necessarily include aggregate bank exposure. Penal interest is the higher interest rate charged by banks once an account becomes a non-performing asset”

As per the precious notification RBI aforesaid, “S4A norms will be applicable on entities having Rs 500 crore plus debt. Asset restructuring companies (ARCs) backed accounts will also come under this. Earlier, accounts under ARCs for cash consideration were not incorporated”

Meanwhile the sources said that, “banks can now accept upfront infusion from promoters to reduce debt”

 

 

 

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