Bad debt: SC asks finance ministry to explain steps taken for recovering NPAs
SC has also asked the Finance Ministry to inform as to what safeguards it is bringing in to curb bad debt.
Zee Media Bureau
The Supreme Court on Tuesday asked Finance Ministry to inform it about mechanism in place for recovery of huge NPAs.
It also asked the Finance Ministry to inform as to what safeguards it is bringing in to curb bad debt.
The apex court has also asked RBI and Indian Banks Association to respond to the issues being framed in this regard.
Meanwhile, government has told the court that some amendments are already in the offing and Bankruptcy Code will soon be in place.
CJI observed,"Steps needed to prevent such huge write-off. If you propose committee which can look into all these issues, we'll be okay with it".
SC also observed that if the present system would have been perfect then banks would not have had huge outstandings.