Delay in accounting rules spares Indian banks from inflating bad loans

24th March, 2019 11:39:51 printer

NEW DELHI: 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 (Dh697.3bn) pile of bad loans on their books.

The Reserve Bank of India said on 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 said in a statement on its website, report agencies.

The new rules – based on the IFRS9 standards created in the aftermath of the financial crisis – were supposed to kick in at the start of the new fiscal year.