The RBI has done away with nearly half a dozen loan restructuring schemes and replaced them with a strict 180-day timeline by when banks need to finalise a resolution plan in case of default, failing which the account will be referred for bankruptcy.
Banks will have to start insolvency proceedings against accounts with ₹2,000 crore or more loan default if a resolution plan is not implemented within 180 days of occurrence of default. Under the new framework, the RBI has asked banks to report credit information, including classification of an account as special mention account to the Central Repository of Information on Large Credits on all borrowers with aggregate exposure of ₹5 crore and above.
The RBI has mandated weekly information on large delinquent accounts.