RBI turns down banks' plea to relax June 7 circular on stressed assets

Loans of over Rs 1.8 trillion, for which agreement has been signed by banks, are likely to be referred to IBC

With no resolution in sight for nearly Rs 3 trillion of stressed assets, banks seem to be reaching a dead end with respect to the inter-creditor agreements (ICAs) signed for these loans. 

Sources said banks had sought some relaxation from the Reserve Bank of India (RBI) on timelines and modalities for reaching a resolution under the regulator’s June 7 circular on prudential framework for resolution on stressed assets. However, highly placed sources said the regulator was unwilling to budge on its stand. 

“As banks aren’t making much progress on ICAs signed under the June 7 circular, there was another representation