RBI had set a 180-day timeline starting 1 March for resolving large corporate loan defaults, failing which banks have to refer these cases for insolvency proceedings.
Essar Power, Reliance Naval and Jindal India Thermal are among the 20 NPA accounts (Non Performing Accounts) that banks will refer to NCLT for debt resolution under the Insolvency and Bankruptcy Code.
RBI through its 12 February circular also introduced the concept of a one-day default, under which banks have to identify incipient stress when repayments are overdue even by a day.
With the RBI’s 180-day deadline for resolution of stressed assets coming to an end, banks are now expected to initiate debt resolution proceedings against defaulters.
Source – https://www.business-standard.com/article/economy-policy/30-stressed-power-accounts-set-to-go-to-nclt-as-rbi-s-npa-deadline-ends-118082801217_1.html