 "Illustration: Ajay Mohanty")
The Reserve Bank of India (RBI) has informally reminded banks of the need to make additional provisioning for ‘standard’ telecom loans and specific exposures in the sector with a high probability of being declared non-performing assets (NPAs) in their books down the line.
The RBI’s move is the first on the treatment to be accorded to the sector’s exposures by banks following the Supreme Court’s (SC’s) order of October 24, 2019. The SC order had said telephony players were to pay past airwave charges and licence fee dues, according to the adjusted gross revenue (AGR). This has been calculated by
