RBI introduces simplified framework for resolution of stressed assets

The Reserve Bank of India said late on Monday it was withdrawing all its existing mechanisms for tackling bad debt at Indian banks and replacing them with a harmonised and simplified generic framework for resolving stressed assets.

The new system will force lenders to identify and tackle any stressed-asset accounts more rapidly, the regulator said.

Last year, India tweaked its laws to give the central bank more authority to push lenders to deal with the nearly $150 billion in troubled debt at banks, which has choked off new lending and slowed the economy.