The Reserve Bank of India has scrapped numerous loan restructuring programmes prevalent among banks to restructure defaulted loans and made resolution of defaults time bound with the Insolvency and Bankruptcy Code becoming the main tool to deal with defaulters. The central bank has warned banks of monetary penalties and higher provisions if banks are found to have violated or found `evergreening’ accounts to escape its stringent new norms on fixing defaults.

Source - https://economictimes.indiatimes.com