To tackle bad loans, RBI proposes formation of dual funds by banks

Zee Media Bureau

New Delhi: In order to tackle the burning problem of sticky loans and debt-heavy companies, Reserve Bank of India (RBI) has proposed formation of dual funds by banks which may help in solving the tricky situation.

As per a report published in Economic Times, the RBI has proposed to banks, in a letter dated May shot to the Indian Banks' Association, to set up two different funds.

One of the funds will infuse equity into stressed companies and the other give working capital finance.