Set aside order on NPA classification freeze: RBI to Supreme Court

The RBI informed the court that the regulator had been "most proactive" in accounting a series of measures to mitigate the impact of the Covid-19

The Reserve Bank of India (RBI) has asked the Supreme Court to set aside its order on declaring accounts as non-performing assets temporarily as it will undermine its regulatory powers, while submitting that the regulator cannot address structural problems of the real estate sector that has sought additional relief.

The central bank also told the apex court that primary concern of the petitioners, who have asked for relief on payment of interest during the six-month moratorium period (from March-August), have been addressed through the Central government’s proposal to foot the compound interest sum of small borrowers.

“It is humbly submitted