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RBI To Assign “Lower Risk Weight’ on Loans Under IBC
May 08, 2019
The Reserve Bank of India (RBI) will be implementing a plan to ‘incentivise’ lenders enabling them to take errant borrowers to the bankruptcy court. In the wake of a recent SC ruling, this move from the RBI is to overcome hurdles by assigning a ‘lower risk weight’ on loans to companies against which action has been initiated under the Insolvency & Bankruptcy Code (IBC) of 2016.
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