May 5, 2017 / 7:36 AM / 3 months ago

India tweaks rules to help resolve banks' $150 bln bad debt problem

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NEW DELHI/MUMBAI, May 5 (Reuters) - The Indian government on Friday tweaked rules to help tackle the record $150 billion in troubled debt accumulated in the nation's banks.

The government may authorize the Reserve Bank of India to direct banks to initiate an insolvency resolution process in the case of a default under provisions of the bankruptcy code, the Indian government said, in an ordinance published on Friday that alters the country's Banking Regulation Act.

The ordinance, which goes into effect immediately, also said the RBI may specify one or more authorities, or panels to advise banks on resolution of stressed assets. (Reporting by Rajesh Kumar SIngh and Devidutta Tripathy; Editing by Euan Rocha)

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