Tuesday, 23 April, 2019

Explained: Why Supreme Court order on RBI note matters

Stock markets Stock markets
Russell Knight | 06 April, 2019, 10:54

The Supreme Court Tuesday quashed the RBI circular of previous year that pertains to the provisions for referring the defaulter to the National Company Law Tribunal (NCLT) even on a one-day overdue.

On February 12, 2018, RBI had asked banks and other lenders to either execute a resolution plan for big stressed accounts or file insolvency petitions against them in the National Company Law Tribunal (NCLT).

India's Supreme Court on Tuesday quashed a Reserve Bank of India circular on resolving bad debt, providing relief for some major corporate defaulters but throwing India's nascent bankruptcy regime into question. "All actions taken under the said circular, including actions by which the Insolvency Code has been triggered must fall along with the said circular".

Several companies, including those in power, sugar, and shipping, had challenged the RBI move in court.

On Wednesday, April 3, a Supreme Court bench led by Justice Rohinton Nariman struck down the RBI circular and declared that it is unconstitutional in an 84-page judgment. Since banks have already provisioned for likely loan losses, that process was unlikely to be reversed, a top banker with a public sector bank said.

The 12 February circular, termed as stringent by both banks and borrowers, had sought to streamline the way banks classify bad debts and force banks to take stressed accounts into the bankruptcy framework in a time-bound manner.

Carlos Ghosn hauled back in for questioning
The money may have been spent to purchase a luxury yacht for the use of Ghosn's family and other items, according to the sources. The ousted chairman was approved by a Tokyo court on March 5 to be released on bail after being detained for more than 100 days.

South Asia / Children in South Asia hit by air pollution
In the developing world, reliance on solid fuels, such as biomass for cooking and heating, is the main source of indoor pollution. A recent Greenpeace study put seven Indian cities among the top 10 most polluted global cities in terms of PM2.5 levels.

Zinedine Zidane On Marcelo: 'I Like How He Plays'
In particular, Manchester United are in need of a leader at the back, something Varane has grown to become while at Real Madrid . Zidane even said on the weekend that he 'likes Pogba a lot'.

Some bankers, however, fear the ruling may result in more wrangling between banks and borrowers around soured loans and dent bankruptcy reforms.

Indian banks and financial institutions now hold total bad debt of over 10 trillion rupees ($146 billion) and this has also affected their ability to lend and spur economic growth.

"Its our endeavor and we will ensure there is faster resolution of stressed assets because it is very critical for the stability of the banking sector and has an impact on the overall financial sector".

"This is credit negative for Indian banks as it will weaken stressed loan recognition and resolution for large borrowers, and delay the resolution process of some existing large non-performing loans (NPLs)", Moody's Investors Service said in a research note. This resolution plan was to be formulated by all the lenders of the company should the company default in the payment of interest to any one of its lenders.

RBI governor Shaktikanta Das said the circular will be issued without any "undue delay", saying the central bank "stands committed to maintain the momentum of resolution of stressed assets and credit discipline".

The agency had also said 92 percent of this debt were classified as NPAs by banks as of March 2018 and also made provisions of over 25-40 percent on these accounts. The interim relief was aimed at helping banks restructure and offload their loans to struggling companies.

Recommended

Was Adam Sandler Fired From 'SNL'? - Plus, His Best Characters Was Adam Sandler Fired From 'SNL'? - Plus, His Best Characters There's also the matter of Sandler being fired from the show back in 1995 after five-plus years. He next stars in "Murder Mystery" with Jennifer Aniston on Netflix June 14.

Measles outbreak: health officials continue to investigate cluster Measles outbreak: health officials continue to investigate cluster There are now 15 measles cases so far this year in Texas, and the total number nationwide already tops all of last year. Measles is a highly contagious disease that is spread through the air when a person with measles coughs or sneezes.

Billy Ray Cyrus steps into Lil Nas X country music row Billy Ray Cyrus steps into Lil Nas X country music row Most importantly, it's a victory for Lil Nas X , who has remained remarkably cool about this whole thing. Don't try and think outside the box.

Bad diets now kill more people than smoking Bad diets now kill more people than smoking She said the UK's challenge to the food industry to reduce sugar from everyday foods was "a clear step in the right direction". Perhaps that's why the authors of the new Lancet study say their findings point to the need for coordinated, global efforts.

Google Duplex now headed to non-Pixel phones and iPhones Google Duplex now headed to non-Pixel phones and iPhones While this solved the Google Photos issue, it also prevented users from casting any of their other apps like YouTube or Spotify. When Is The Roll Out? Google is first trying to launch a Duplex assistant in all 50 US states before moving onto other devices.

Malaysia opens first trial for former PM Najib Razak Malaysia opens first trial for former PM Najib Razak 1MDB, founded by Najib in 2009, is the subject of corruption and money laundering investigations in at least six countries. In 2015, questions were raised around its activities after it missed payments owed to banks and bondholders.

Cigna Launches New Program Capping Monthly Insulin Costs At $25 Cigna Launches New Program Capping Monthly Insulin Costs At $25 More than 1.2 million Americans live with Type 1 diabetes, according to the American Diabetes Association . Steve Miller , executive vice president and chief clinical officer at Cigna, said in the announcement .

White House refuses to denounce Trump's windmills cause cancer claim White House refuses to denounce Trump's windmills cause cancer claim Donald Trump and his distrust towards renewable energy have taken on new heights as he recently slammed wind turbines yet again. However, claims about the negative health impacts of wind turbines have often circulated. "You know how those things change.

Geagea Says Israeli Body Handover Shows 'There's No State in Syria' Geagea Says Israeli Body Handover Shows 'There's No State in Syria' The precise location of his remains was not disclosed, but Netanyahu said Russian soldiers had risked their lives to get them. The last major breakthrough in the search for Baumel and two other soldiers who went missing at the same time came in 1993.

Thursday NHL game preview: Tampa Bay Lightning at Toronto Maple Leafs Thursday NHL game preview: Tampa Bay Lightning at Toronto Maple Leafs The Hurricanes then defeated the Philadelphia Flyers 5-2 on Saturday, only to drop a must-win game against the Penguins on Sunday. The puck fell to Tavares and he buried his own rebound from in close to add to his career-high goal and point totals at 10:55.

Chinese woman charged after entering Trump's resort Chinese woman charged after entering Trump's resort Zhang gained access to the property last Saturday through an apparent miscommunication with members of Mar-a-Lago security. Zhang behaved as though she didn't understand much English when she entered the Mar-a-Lago grounds, the complaint says.

Reversal: Mormon Church To Baptize Children Of LGBTs Reversal: Mormon Church To Baptize Children Of LGBTs The statement added: 'Instead, the immoral conduct in heterosexual or homosexual relationships will be treated in the same way'. The Mormon Church had literally forced children of same-sex parents to choose between their faith and their families.

US Finds No Pakistani F-16 Missing US Finds No Pakistani F-16 Missing India launched a counter-terror operation against a JeM training camp in Balakot in Pakistan's Khyber Pakhtunkhwa province.

Former O.J. Simpson Prosecutor Defending Eric Holder Former O.J. Simpson Prosecutor Defending Eric Holder Holder was charged with one count of murder , two counts of attempted murder and one count of possession of a firearm by a felon. Local news reports said he was being kept in solitary confinement in jail for fear he might be attacked by other inmates.

New images from 'Terminator New images from 'Terminator I'm sure every action filmmaker says that, but I did really try and focus on the relationships of these characters to one another. Terminator: Dark Fate is produced by James Cameron and David Ellison and hits theaters on November 1, 2019.