Govt asks PSBs to look for alternative resolution mechanism outside IBC

Banks have also been asked to promote the disbursement of Mudra loans

The Union government has directed public sector banks (PSBs) to look for an alternative resolution mechanism outside the Insolvency and Bankruptcy Code (IBC). The government has further told them to build “resilient credit risk control systems” for high-value loans, and has set a deadline of 45 days to decide upon consortium lending proposals.

These measures are part of a second round of reforms under the Enhanced Access and Service Excellence programme, known as EASE 2.0, sent by the finance ministry to all PSBs. PSBs will be bound to follow EASE 2.0 because the 64-point measures will be part of the annual