Why is it in the news?
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The Supreme Court struck down the Reserve Bank of India’s ‘February 12 2018 order’ that dealt with resolution of stressed assets in the economy.
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The top court termed the February 12, 2018 order as unconstitutional.
More in the news
- In view of the enactment of the IBC Code, 2016, the Reserve Bank had decided to substitute the existing guidelines with a harmonised and simplified generic framework for resolution of stressed assets.
- Power Sector:
(1) The Supreme Court’s order has come as a huge breather to the power sector which is staring at 66,000 mega watts (MW) of stressed power assets worth ₹1.8 lakh crore.(2) The RBI circular had mandated banks to either immediately resolve all bad loans above ₹2,000 crore or file for insolvency resolution under the IBC.
Source
The Hindu.