1 Min Read
MUMBAI, June 13 (Reuters) - The Reserve Bank of India outlined on Tuesday a plan to expedite the resolution of the $150 billion bad debt problem plaguing the country's banks by focusing first on some of the large stressed accounts held by lenders.
The RBI, in a statement, said it has identified 12 accounts that constitute about 25 percent of the overall gross non-performing assets in the system and directed lenders to begin insolvency proceedings around these accounts immediately.
The move comes about a month after the Indian government changed rules giving the central bank greater power to deal with bad loans. (Reporting by Suvashree Choudhury and Euan Rocha; Editing by Rafael Nam)