The growing bad loans in the banks are posing a threat in the economy. In recent months the economic growth has slowed down significantly. This has been a major concern for the policymakers. To help the lenders in the glooming economy Reserve Bank of India has launched a framework. Last the apex bank released some rules to detect in advance the causes of financial stress, so that they can help the banks to curb it.
RBI proposed the enhancement in restructuring process by making assessment of large asset restructuring compulsory. Basically RBI is planning to enhance the early identification and timely restructuring of assets. It has been reported that the bad loans in the economy accounts for nearly $100 billion or we can also say 10% of the total loans.