The RBI on Tuesdayhad said it has identified 12 large loan defaulters and their cases will be referred to respective banks for filing insolvency proceedings. These cases will be accorded priority by the National Company Law Tribunal, NCLT. Each of the defaulters identified by RBI owes over 5,000 crore rupees to banks.

The Finance Ministry further said that NCLT was being strengthened to fast track bankruptcy proceedings under the Insolvency and Bankruptcy Code. The banking sector is saddled with non-performing assets of over 8 lakh crore rupees, of which 6 lakh crore rupees is with public sector banks.

RBI action follows government promulgating an ordinance to fast track resolution of non-performing assets.