RBI's revised NPA norms give banks 30 days from default for resolution plan

Plan has to be implemented within 180 days after that

The Reserve Bank of India (RBI) on Thursday allowed banks more time and flexibility to consider how they want to treat an account after it has defaulted. This came after the Supreme Court quashed the circular the RBI issued on February 12 last year on recovering bad loans.

Banks will now have 30 days to think of a plan after a “default” and a further 180 days to execute the plan.

Banks can even delay implementing the plan if they have enough capital to set aside. However, if they decide to take tough action against defaulters, their pledged provisions can