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the NCLAT had permitted banks to declare their defaulting accounts of IL&FS and its group firms as NPAs.

 PTI        Final Updated: May 9, 2019  | 22:32 IST

Following an NCLAT order, the Reserve Bank of India (RBI) has withdrawn its circular asking banks and economic institutions to declare specifics of their exposure and provisions associated to the crisis-hit IL&FS.

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Final week, the National Firm Law Appellate Tribunal (NCLAT) had permitted banks to declare their defaulting accounts of Infrastructure Leasing & Monetary Solutions (IL&FS) and its group firms as non-performing assets.

“In view of the NCLAT order dated Might two, 2019…the directions contained in (April 24) circular stand withdrawn,” the RBI mentioned Wednesday. The circular had asked banks and economic institutions to disclosure their exposure to IL&FS and its group entities as the NCLAT verdict was pending.

The money-strapped IL&FS group is sitting on a debt of about Rs 94,000 crore. Various group firms have defaulted on the payment of interest payment on loans.

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