The Reserve Bank of India, on Wednesday, issued new guidelines doubling the ceiling to 10 crore for settling non-performing assets of public sector banks under the recently enacted Securitisation Act, giving yet another opportunity for defaulters to settle their dues.
The revised guidelines will cover NPAs of all sectors which have become doubtful or loss as on March 31, 2000.
But the outstanding balance should be Rs 10 crore or less on the cut off date, an RBI notification said.
"These, however do not include cases of wilful default, fraud and malfeasance," RBI said.
The central bank has fixed April 30 as last date for applications from borrowers processing of which under revised guidelines should be completed by October 31, 2003.
RBI said it was decided in consultation with the Centre that "one more opportunity "may be given to the borrowers to come forward for settlement of their outstanding dues."
The guidelines also covers cases pending before courts, debt recovery tribunals and BIFR.
"Banks should give notice by February 28 to borrowers to avail of the opportunity for one time settlement of their outstanding dues in terms of these guidelines," RBI said.
The fresh guidelines would provide a simplified, non-discretionary and non-discriminatory mechanism for compromise settlement of chronic NPAs below the prescribed value ceiling, it added.
"The decision on the settlement and consequent sanction of waiver or remission or write-off should be taken by the competent authority under the delegated powers," the central bank said.
The regulator has asked banks to follow the guidelines without discrimination and submit a monthly report to their central office and a copy should be sent to the RBI as well.
More from rediff