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RBI identifies 12 accounts that constitute 25% of total NPAs worth over Rs 178000 crore
In a step that might help recover some of the lakhs of crores of rupees that have been declared as bad debts, the Reserve Bank of India said that it had identified accounts that compose a major chunk of the overall bad debts. However, the names of the holders of these accounts have not been revealed by the RBI.

India's central banking institution has said that its internal advisory committee has identified 12 accounts that constitute for about 25 per cent of the total non-performing assets of the baking system. This is a very substantial figure keeping in mind that the bad debts of the Indian banking system have crossed Rs 7 lakh crore (March, 2017).

Going by that figure, the 12 accounts that have been identified by the RBI account for over 1.78 lakh crore rupees. The accounts were identified by the internal accounts committee (IAC) of the Central Bank which mainly comprised of independent board members of the RBI.

In a statement issued by the RBI, the bank said, "The IAC, in the meeting, agreed to focus on large stressed accounts at this stage and accordingly took up for consideration the accounts which were classified partly or wholly as non-performing from amongst the top 500 exposures in the banking system."

All these accounts identified by the IAC owe more than Rs 5,000 crore each to the banks. The RBI is expected to issue directions to banks to file for insolvency proceedings against the defaulters. This will be based on the recommendations of the IAC and the proceedings will be undertaken under the Insolvency and Bankruptcy Code 2016 (IBC).

The RBI especially under the leadership of the present Governor, Urjit Patel has received a lot of flak for being unable to act on the NPAs that have been mounting day by day. More severe criticism had come when the Central Bank had favoured restructuring of the loans of corporates that owe the bank thousands of crores of rupees. How the current move will now be implemented and how effective will that be remains to be seen.

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