RBI (Prudential Framework for Resolution of Stressed Assets) Directions 2019

Jun 10, 2019 | by Avantis RegTech Legal Research Team


The Reserve Bank of India (RBI) on June 07, 2019, has published the Reserve Bank of India (Prudential Framework for Resolution of Stressed Assets) Directions 2019. These directions shall come into force with immediate effect.

The main purposes of these Directions are:

•These directions are issued with a view to providing a framework for early recognition, reporting and time bound resolution of stressed assets.

•These directions are issued without prejudice to issuance of specific directions, from time to time, by the Reserve Bank to banks, in terms of the provisions of Section 35AA of the Banking Regulation Act, 1949, for initiation of insolvency proceedings against specific borrowers under the Insolvency and Bankruptcy Code, 2016 (IBC).

The provisions of these directions shall apply to the following entities:

1. Scheduled Commercial Banks (excluding Regional Rural Banks);

2. All India Term Financial Institutions (NABARD, NHB, EXIM Bank, and SIDBI);

3. Small Finance Banks; and,

4. Systemically Important Non-Deposit taking Non-Banking Financial Companies (NBFC-ND-SI) and Deposit taking Non-Banking Financial Companies (NBFC-D).

[Notification No. DBR.No.BP.BC.45/21.04.048/2018-19]

Click here to download the Notification.

 


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