The Reserve Bank of India (RBI) is unlikely to announce special sectoral exceptions in its new circular on stressed assets, reported The Economic Times.

The new circular that is expected to be issued this month itself is likely to provide certain relaxations on timelines ‘vis-à-vis the February 12, 2018 notification,’ the report said citing a government official in know of the development.

In addition, the central bank, which has started informal consultations with the finance ministry, may also seek resolution plans for stressed assets to be approved by 90 percent lenders in a consortium contrary to the demands of industries who sought it to be reduced to 66 percent in line with provisions of the Insolvency and Bankruptcy Code, the report said.

“It will be difficult to give special treatment to one sector against the other, as it may lead to discontent and legal challenges. So far, there is no such consideration,” a government official was quoted as saying in the report.

Earlier, the Supreme Court had quashed a previous RBI notification that required approval by all lenders.

First Published:Jun 6, 2019 9:36 AM IST