Banks want RBI to revise Feb 12 circular, ease asset classification norms

Banks have requested a relook on its February 12 circular that makes a firm a defaulter as soon as it misses a payment within the due date

Bankers want the Reserve Bank of India (RBI) to ease some of the tight norms for asset classification, and have requested a relook on its February 12 circular that makes a firm a defaulter as soon as it misses a payment within the due date. 

The Indian Banks’ Association (IBA) has sent two letters to the new RBI Governor Shaktikanta Das — one elaborating banking sectors’ demands in the new year, and another specifically seeking relaxation on the IL&FS debt of about Rs 60,000 crore, according to sources. 

“Our demands are essentially same as every year. But this year, we have asked the RBI to reconsider the February 12 circular,” said a senior banker, requesting anonymity.