Govt, RBI plan to initiate criminal action against large wilful defaulters

PMO, FinMin, RBI also plan one-time settlement scheme for some sectors

The government, along with the Reserve Bank of India (RBI), is mulling a multi-pronged strategy — initiating criminal action against wilful, big defaulters and a one-time settlement for certain sectors — to tackle the mess of toxic debts in public sector banks. 

The strategy will also involve encouraging banks to take a haircut, setting up more oversight panels and reworking the joint lenders’ forum (JLF).

Ways to initiate a push to nab large, wilful loan defaulters and resolving rising non-performing assets (NPAs) were discussed in a slew of meetings among the Prime Minister’s Office (PMO), the finance ministry and the