India’s Central Bank to Issue New Rules on Cleaning Up Bad Debt

The Reserve Bank of India will issue new rules for resolving bad debts after the nation’s top court struck down an earlier directive that tightened rules for stressed asset resolution.

The central bank “will take necessary steps including issuance of a revised circular as may be necessary for expeditious resolution of stressed assets,” RBI Governor Shaktikanta Das told reporters in Mumbai on Thursday. “RBI stands committed to maintain and enhance the momentum of resolution of stressed assets and adherence to credit discipline.”