NPA policy: Govt to help banks speed up decisions

Threshold in lenders' forum likely to be reset

The Narendra Modi government’s new policy to deal with non-performing assets (NPAs) is likely to be centred around consortia of banks. It is planning a framework which will enable a consortium to deal more effectively with NPAs. 

For this, the new policy would possibly tweak the current guidelines and reduce the threshold in terms of exposure as well as the number of banks within a joint lending forum (JLF) for taking a decision on NPAs.

According to the current rules, decisions regarding a bad loan or toxic assets are binding on all lenders in a JLF if they are approved by 75