RBI Issues Framework for Compromise Settlements and Technical Write-offs
- Blog|News|FEMA & Banking|
- < 1 minute
- By Chetan Kulasri
- |
- Last Updated on 12 June, 2023
Latest from Taxmann
Circular No. RBI/2023-24/40 DOR.STR.REC.20/21.04.048/2023-24, Dated 08.06.2023
RBI has introduced a framework for compromise settlements and technical write-offs. Regulated entities must establish board-approved policies for such settlements. Compromise settlements involve fully settling borrower claims in cash, potentially requiring REs to sacrifice some amount due with a corresponding waiver of claims against the borrower. Technical write-off refers to when NPA are written off for accounting purposes without waiving claims against the borrower or hindering future recovery.
Click Here To Read The Full Circular
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
CA | CS | CMA
