RBI makes it tough for firms to get away with loan default

The Reserve Bank of India has moved in to make it difficult for corporate borrowers to escape repaying banks for their loans. In less than a month after putting up a plan for better fire-fighting against bad loans, RBI Governor Raghuram Rajan has finalised the rules for Indian banks. The norms say that shareholders, including promoters of companies, will be asked to suffer the first loss instead of the banks that provided the debt.

Read Full Story>>