Rbi Finalises Terms For Small Sticky Loans Settlement

The Reserve Bank of India (RBI) has finalised the terms of yet another one- time settlement (OTS) scheme for tackling the problem of non-performing assets (NPAs) in public sector banks (PSBs). Unlike the earlier scheme, which sought to settle bad loan accounts of up to Rs 5 crore, the new OTS scheme is aimed at cleaning bank balance sheets of small sticky loan accounts with sanctioned limits of up to Rs 25,000.

The RBI's formal note to all public sector banks, follows the finance minister's suggestion -- made at a meeting with chiefs of all public sector banks on November 12 -- that banks should