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Q12. Consider the following statements about New Insolvency rules announced by RBI: 1. Banks will have to file for insolvency proceedings against loan defaulters with Rs 20 billion ($311 million) or more if a resolution plan is not implemented within 180 days of the initial occurrence of a default. 2. Any process involving restructuring or change in ownership for large accounts with loans of 5 billion rupees or more will need independent credit evaluation by credit rating agencies that are authorized by the RBI. Which of the following statements are correct?

Answer»

Q12. Consider the following statements about New Insolvency rules announced by RBI:

1. Banks will have to file for insolvency proceedings against loan defaulters with Rs 20 billion ($311 million) or more if a resolution plan is not implemented within 180 days of the initial occurrence of a default.

2. Any process involving restructuring or change in ownership for large accounts with loans of 5 billion rupees or more will need independent credit evaluation by credit rating agencies that are authorized by the RBI.

Which of the following statements are correct?




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