The RBI today zeroed in on 12 accounts, which account for about 25% of total non-performing assets of banks, to start bankruptcy proceedings.
Each of the accounts have over Rs Rs 5,000 crore of outstanding loans. These 12 accounts would be immediately referred under the Insolvency and Bankruptcy Code (IBC), the RBI said.
The banking sector is saddled with non-performing assets (NPAs) of over Rs 8 lakh crore, of which Rs 6 lakh crore is with public sector banks (PSBs).
The central bank, however, did not name the defaulters.
The Reserve Bank had set up an Internal Advisory Committee (IAC), comprising a majority of its independent board members, to advise it with regard to the cases that may be considered for reference for resolution under the IBC.