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RBI's Reluctance to Allow Relaxation in Insolvency Proceeding Dismays Private Players

<p><span style="font-size:9.0pt">RBI floated a circular in Feb 2018, for imposition of more stringent default rules, wherein insolvency proceeding would trigger post default of more than 90 days. This circular has jittered many of private players in segment and simultaneously petitions are filed before various courts against the said circular. Imposition of norms would relieve total outstanding loans of scheduled commercial banks to the power sector (including renewables) in tune of Rs 5.65 lakh crore, but may dwindle faith and sentiments of private investors in the segment.&nbsp; </span></p>