Banks Urged to Fast-Track NARCL and NCLT Resolutions

The Finance Ministry has instructed banks to closely monitor cases in NARCL and NCLT for faster bad loan resolutions. An integrated portal is being developed for seamless information flow. The move aims to enhance the efficiency of resolution mechanisms and strengthen the financial ecosystem.

The Finance Ministry is urging banks to expedite bad loan resolutions by diligently monitoring cases in NARCL and NCLT. A new integrated portal is being crafted to streamline communication between banks and NCLT, aiming to diminish procedural delays and expedite case resolutions.

This directive follows a review meeting led by Department of Financial Services Secretary M Nagaraju, focusing on improving the efficiency of resolution mechanisms through NARCL and NCLT. NARCL's acquisition of 22 accounts worth Rs 95,711 crore showcases its effectiveness in resolving financial stress.

Banks are being advised to reinforce their cooperation with NARCL and actively manage their top cases, ensuring significant involvement from senior officials. The Government commits to a robust recovery framework by enhancing collaboration among all stakeholders to create an efficient resolution process.

(With inputs from agencies.)