India Postpones Accounting Rules, Sparing Banks Bad-Loan Piles
- Banks would have required substantial amounts of extra capital
- Reserve Bank of India already delayed new rules in 2018
Reserve Bank of India (RBI) headquarter building in Mumbai.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
India delayed the introduction of tough new accounting rules for the second year running, in a move that will spare the country’s banks from adding another layer to the $190 billion pile of bad loans on their books.
The Reserve Bank of India said late Friday that legislative amendments needed to implement the new Indian Accounting Standards are still under consideration by the government. “Accordingly, it has been decided to delay the implementation” of the rules “until further notice,” the RBI added in a statement on its website.