Banks, bankers may face fines for poor progress over RBI's June 7 circular

The fresh set of guidelines, which will usher in a stricter compliance regime, is in the works and could be in the public domain by end of March

The Reserve Bank of India (RBI) may impose heavy penalties on banks, and stipulate higher provisioning for stressed loans following a supervisory review of its June 7 circular. And, in a first-of-its-kind move, chief executive officers (CEOs) and senior management of banks could also be held liable for lack of progress.

The RBI has also indicated that banks can start resolution of stressed loans less than Rs 1,500 crore without waiting for a formal notification. The June 7, 2019, circular was only applicable for stressed accounts in excess Rs 2,000 crore. From January, it was also applicable for stressed accounts