scorecardresearchAs banks can now sell ‘fraud loans’, what does this mean for Indian banks

As banks can now sell ‘fraud loans’, what does this mean for Indian banks

Updated: 15 Dec 2021, 05:02 PM IST
TL;DR.
Instead of making 100 per cent provisions for ‘fraud’ loans, banks can now transfer loans to asset reconstruction companies for a lower price. Let us decode how this is set to reform the banking landscape of India.
The RBI has drawn a set of guidelines that will govern transfer of loans by banks to asset reconstruction companies.

The RBI has drawn a set of guidelines that will govern transfer of loans by banks to asset reconstruction companies.