On Friday, the Reserve Bank extended the period for final realization of bad assets from the existing five to seven years to decrease the pressure of NPAs rising on companies.
The Bank increased the time limit for reconstruction and securitisation companies (SCs/RCs) for realisation for reconstruction of assets taken by it.
"As an interim measure, the Bank has accorded permission to give an extension of two more years for realisation of the assets in respect of the security receipts (SRs) issued by SCs/RCs which have completed five years," said the Reserve Bank in a notification
The Central bank had received representations from many asset reconstruction and securitisation companies which had not been able to realize the financial asset acquired within the given time frame. |
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