The finance ministry reportedly wants the Reserve Bank of India (RBI) to ease the norms for bad loans, ostensibly(जाहिरा तौर पर/प्रकट रूप से) to prevent(प्रतिबंध करना) mass corporate distress(संकट/विपत्ति). This is a bad idea. Lengthening the period when companies are in a limbo between healthy and bankrupt(दिवालिया) only gives errant(गुमराह) managements tosiphon(खाना/अपनाना) money out of their companies, and leaving less for the creditors.The resolution process under the (IBC) was meant to change the paradigm(मिसाल/नमूना) of cronies(साथी) waxing rich not by entrepreneurial(उद्यमी) flair or the sweat of their brow but by unhindered access to the public’s savings, accessed as loan and equity. It stood for a real threat of separating the promoter from the asset used to grab funds.Swift recognition(मान्यता/पहचान) of bankruptcy is meant to realise this goal and reassign the distressed asset to those who can create maximum value from it, minimising the haircut that lenders need to take and reducing the recapitalisation(पुनर्पूंजीकरण) burden(बोझ) of the government and taxpayers.

Stringent(कठोर/सख़्त) provisioning(प्रावधानीकरण) norms, that also require banks to set aside more capital against non-performing loans, are part of the paradigm. Banks want the NPA classification norm of one day to be extended to 30 days, and a relaxation in the rule that requires that all consortium(संघ/सहायता संघ) lenders(उधारदाताओं) to approve the resolution plan. Any deadline bites, and could lead to demands for one more extension. Pray, why give that chance? Gross NPAs are estimated at around Rs 9 lakh crore.RBI data shows that state-owned banks could recover about Rs 15,786 crore in 2016-17 and 2017-18 (till December 31, 2017). With the regulator scrapping other debt restructuring(पुनर्गठन) schemes, the focus of banks must shift away from lobbying(पक्ष जुटाव) for easier bad loan rules to effective use of the IBC to resolve corporate distress. That’s the best way to revive(पुनर्जीवित) tiny enterprises(छोटे उद्यम) as well.

Important Vocabulary

Synonyms: ache, affliction, anguish, anxiety, blues
Antonyms: advantage, aid, blessing, calm, calmness

Synonyms: aberrant, erratic, offending, stray, unorthodox
Antonyms: normal, correct, righteous

Synonyms: accomplice, acquaintance, associate, buddy, chum
Antonyms: antagonist, enemy, foe, opponent, stranger

Synonyms: archetype, chart, criterion, exemplar, ideal

5.Lobbying(पक्ष जुटाव)
Synonyms: campaign for, persuade, politick, press, promote
Antonyms: discourage, dissuade, leave alone, pull, repress

Synonyms: arouse, encourage, energize, invigorate, overcome
Antonyms: bore, break, damage, depress, destroy

7.Consortium(संघ/सहायता संघ
Synonyms: conglomerate, corporation, gang, holding company, mobstar



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