MP HC Issues Notice to Centre on Plea to Exempt 'Fantasy Sports' from New Online Gaming Law  ||  Delhi HC: Rise in Husband's Income, Living Costs Valid for Increasing Wife's Maintenance  ||  Delhi HC: State cannot limit Parole, Furlough in the name of Disciplining Prisoners  ||  Calcutta HC: Expecting Educated, Earning Wife to Contribute to Expenses is not Cruelty  ||  Delhi HC: Can File Cheque Bounce Complaint if Payment is Not Made Within 15 Days  ||  Calcutta HC: Section 94 BNSS is a 'Supplementary Tool' to secure Documents during Probe  ||  SC: Anticipatory Bail Allowed under SC/ST Act Only if Prima Facie Offense isn't Established  ||  SC: High Courts must Justify Framing Additional Questions of Law in Second Appeals  ||  SC Takes Suo Motu Case of Missing CCTV Cameras in Police Stations  ||  Centre Seeks Transfer of Pleas Against Online Gaming Act 2025 from High Court to SC    

RBI issues framework for compromise settlements and technical write-offs - (08 Jun 2023)

Banking

RBI issues a comprehensive regulatory framework governing compromise settlements and technical write-offs covering all the REs. Regulated Entities (REs) are required to put in place Board-approved policies for undertaking compromise settlements with the borrowers. The instructions shall come into force with immediate effect and REs shall take necessary steps to ensure compliance with same.

There shall be a reporting mechanism to the next higher authority, at least on a quarterly basis, with respect to compromise settlements and technical write offs approved by a particular authority. Compromise settlements and technical write-offs approved by the MD & CEO / Board Level Committee would be reported to the Board. Compromise settlements where the time for payment of the agreed settlement amount exceeds three months is to be treated as restructuring. In respect of borrowers subject to compromise settlements, there shall be a cooling period as determined by the respective Board approved policies.

REs may undertake compromise settlements or technical write-offs in respect of accounts categorised as wilful defaulters or fraud without prejudice to the criminal proceeding underway against such debtors. The compromise settlements with the borrowers under the framework are without prejudice to the provisions of any other statute in force. Further, wherever REs had commenced recovery proceedings under a judicial forum and the same is pending before such judicial forum, any settlement arrived at with the borrower shall be subject to obtaining a consent decree from the concerned judicial authorities.

Tags : SETTLEMENTS   FRAMEWORK   ISSUANCE  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved