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RBI outlines plans on bank bad loan resolution

Reuters  |  MUMBAI 

(Reuters) - The Reserve of outlined on Tuesday a plan to expedite the resolution of the $150 billion bad debt problem plaguing the country's 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 greater power to deal with bad loans.

(Reporting by Suvashree Choudhury and Euan Rocha; Editing by Rafael Nam)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)