The Reserve Bank of India (RBI) on June 20, 2023, issued a notification to amend Master Directions – Mortgage Guarantee Companies(MGCs) (Reserve Bank) Directions, 2016 for enabling RBI to regulate the financial system to the advantage of the country and to prevent the affairs of any Mortgage Guarantee Company from being conducted in a manner detrimental to the interest of investors or in any manner prejudicial to the interest of such MGCs.
The amended master directions provides that the MGCs shall comply with the instructions contained in circular on ‘Framework for Compromise Settlements and Technical Write-offs’ dated June 08, 2023, as amended from time to time.
RBI on June 08, 2023 has issued a Framework for Compromise Settlements and Technical Write-offs for finance companies in furtherance of directions provided in the Prudential Framework for Resolution of Stressed Assets dated June 7, 2019.
RBI also issued FAQ on Circular dated June 8, 2023 on ‘Framework for Compromise Settlements and Technical Write-offs’.
