Debt recast: RBI likely to relax voting threshold of lenders to 90%

The Reserve Bank of India (RBI) is likely to relax the voting threshold of lenders — for any corporate debt restructuring — to 90 per cent, as compared to the earlier 100 per cent under the February 12, 2018 circular.

The lowering of the voting threshold is expected to help several firms avoid bankruptcy, and aid banks in recovering dues faster. According to a person close to the development, the proposal was made by the Indian Banks’ Association (IBA) to the RBI, after the Supreme Court struck down the February 12 circular last month.

“The RBI is expected to accept