19/01/2016 2:22 PM IST | Updated 15/07/2016 8:25 AM IST

RBI Chief Meets Financial Institutions To Discuss Indian Banks' $110 Billion Debt

Reserve Bank of India (RBI) Governor Raghuram Rajan announces the first bimonthly monetary policy statement at the RBI headquarters in Mumbai, India, Tuesday, April 1, 2014. Rajan announced Tuesday that the key policy rate will remain unchanged since retail inflation still remains

MUMBAI -- The Reserve Bank of India (RBI) said Governor Raghuram Rajan and two of his deputies met with banks and other financial institutions on Monday to discuss stressed loans in the banking system.

India's banks are grappling with more than $110 billion of troubled debt, a burden that is holding back new loans and hampering a speedier economic recovery.

The RBI said the meeting with representatives from banks, non-banking finance companies and asset reconstruction companies reviewed existing systems for recasting and restructuring stressed assets, including the joint lenders forum and the rules governing sale of bad debt.

The RBI said it received several suggestions at the meeting which will be examined by the central bank.

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