- The Reserve Bank of India (RBI) has recently introduced significant changes to the regulations governing one-time settlements (OTS) and technical write-offs of loans.
- The RBI has issued detailed guidelines aimed at streamlining the process and ensuring greater accountability in these areas for all regulated entities.
- The primary objective of the detailed guidelines provided by the RBI is to establish a comprehensive framework for OTS and technical write-offs.
- These guidelines aim to define the process, set precedents, and outline a graded framework for staff accountability, all within specific timelines.
- The guidelines also emphasize the need for a settlement policy that includes permissible sacrifices for different exposures and focuses on maximizing recovery while minimizing expenses.
Tags:
Economics
