How will RBI walk the tightrope on legal issues concerning stressed assets?

While coming up with a revised framework for resolution of stressed assets, the regulator should be careful of the potential for other legal challenges, say experts

Following the Supreme Court’s order striking down the RBI circular on stressed assets, the spotlight expectedly is now on the banking regulator. Both the government and the RBI have said that they are working on a revised version of the February 12, 2018, circular that would lay down resolution framework of stressed assets.  Experts, however, point out that the challenge before the regulator is to use its general powers of banking supervision and prudential regulation to ensure that banks take corrective measures against defaulters in a time-bound manner and enable out-of-court resolution of stressed accounts.

The apex court on April