One year of RBI's February 12 circular: Here's what experts have to say

CNBC-TV18 spoke with RK Bansal, MD and CEO, Edelweiss ARC; Suharsh Sinha, partner, AZB Partners; BP Sharma, former ED, Bank of India and Sunil Srivastava, former deputy MD, SBI, to understand whether it has changed life and if yes, how?

Bansal said, "Change in behaviour is certainly there and that is a combination of February 12 circular plus NCLT. Overall fear of going to NCLT by any borrower is playing its role and people are making their best efforts to keep the accounts either standard or they go to the banks to at least find a resolution or settle the account."

Srivastava said, "The circular sets the ground rules and perhaps it should have been introduced may be 10 years earlier. But when you look at the practical part of it definitely it has made the borrowers very circumspect in taking further risks. It has caused a behavioural change in as much as they would not like to cross that Laxman rekha." 

Sharma said, "It is visible only in case of fence sitters, which means the borrowers who had money to repay but were delaying, there it has acted, it has helped. But where the project has failed or it is incurring loss I don't think this guideline has helped."