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RBI awaiting formal proposal on 'bad bank' from govt

By ANI | Updated: February 5, 2021 14:35 IST

Reserve Bank of India (RBI) Governor Shaktikanta Das said on Friday that the central bank is awaiting a formal proposal on the proposed bad bank.

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Reserve Bank of India (RBI) Governor Shaktikanta Das said on Friday that the central bank is awaiting a formal proposal on the proposed bad bank.

"We are waiting for a formal proposal from the government," he said in a press conference after the monetary policy announcement.

Besides, said Das, the RBI is also making a deep dive into non-performing assets (NPAs) of each bank to make the sector robust.

In the Union Budget 2021, Finance Minister Nirmala Sitharaman announced the creation of a 'bad bank' in the form of an asset management or reconstruction company model to absorb stressed assets in the banking system.

'Bad bank' will purchase NPAs from banks at a discount. It will then attempt to achieve resolution in such accounts through a professional approach.

The government plans to bring about Rs 2 lakh crore of bad loans under the proposed bad bank.

( With inputs from ANI )

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Tags: Nirmala SitharamanReserve Bank Of IndiaThe finance ministry of indiaMonetary policy committee of the rbiCentral board of reserve bank of indiaReserve bank of india governorNirmala seetharamanFinance ministry and reserve bank of indiaNew india strategyReserve bank of india's board
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