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Loan resolution plan had to be a balanced call, says RBI Governor Shaktikanta Das

Loan resolution plan had to be a balanced call, says RBI Governor Shaktikanta Das

Loan resolution plan had to be a balanced call, says RBI Governor Shaktikanta Das
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By CNBCTV18.com Sept 16, 2020 4:18:19 PM IST (Updated)

The loan restructuring had to be a balanced decision by the Reserve Bank of India (RBI) and needs to ensure the financial stability of the banking sector along with depositors' interest, says RBI Governor Shaktikanta Das.

The loan restructuring had to be a balanced decision by the Reserve Bank of India (RBI) and needs to ensure the financial stability of the banking sector along with depositors' interest, says RBI Governor Shaktikanta Das.

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Addressing the FICCI National Executive Committee Meeting on Wednesday, Das said the central bank has taken note of all suggestions of the KV Kamath Committee on the loan recast scheme and will internally discuss them.
"The loan restructuring had to be a balanced decision by RBI. The financial stability of the banking sector needs to be kept in mind while providing restructuring. The primary concern of the banking system should be the protection of the depositor's money," Governor Das said.
The interest of depositors, need to maintain financial stability were both kept in mind while framing recast rules, he added.
"We do not want a repeat of what happened after 2008 with restructuring. We don't want a repeat of the NPA surge we saw 4-5 years ago," he said.
According to Das, the idea was to protect viable businesses that are facing genuine cash flow problems.
"The revival of business will ensure NPA levels are kept low and also ensure quick economic recovery," Das added.
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