According to a report, a second list of at least 26 defaulters has been sent by the Reserve Bank of India (RBI) to the commercial banks, with which the central bank wants creditors to begin the process of debt resolution before starting bankruptcy proceedings.
The Reserve Bank of India in a letter said that before 13 December these accounts should first be determined through any of RBI’s schemes, failing which cases should be filed against these firms under the Insolvency and Bankruptcy Code (IBC) before 31st December at the National Company Law Tribunal (NCLT).
National Company Law Tribunal (NCLT) is the arbitration authority for cases filed under the IBC.
In its letter, as per a report, RBI further added that these are accounts where 60% of the unsettled amount was categorized as non-performing on the books of banks as of 30 June.
According to a report, the defaulters’ list includes firms primarily in the power, steel, telecommunication and infrastructure sectors.