Every Loan Default Not NPA On 90th Day, Says Piyush Goyal

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Interim Finance Minister Piyush Goyal in a post-budget discussion with industry members advocated softer norms for recognizing non-performing assets (NPAs) and supported some of the borrowers who fail to repay their loans in 90 days time.

Every Loan Default Not NPA On 90th Day, Says Piyush Goyal

The minister cited an example wherein the discom failed to pay the amount due to the power producer and said that here the latter does not become a loan defaulter.

“Law cannot be blind, wherein in 90 days arithmetically it becomes a non-performing asset (NPA). We will also discuss this and we hope to resolve it quickly,” said Goyal.

On Thursday, the Reserve Bank of India already declined to again go through the controversial circular issued on February 12, 2018 that relates to recognition of bad assets as default on first day itself and dumping loan recast schemes.

Goyal said the centre could ascertain that SEBI comes up with a proposal of disclosing each and every default by a listed company. Also the minister hinted at similar steps to be taken up with the apex bank.

“It is worth discussing with the RBI that if a payment is overdue and discom is not paying its bill, then we will have to think about NCLT and NPA,” said Goyal.

It is noteworthy that power companies in the country have asked for special treatment in respect of classification of NPAs from the Supreme Court.

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