Answer: speed up recovery of non-performing assets
Notes: Joint Lenders’ Forum is a group of lenders bank which is formed when an asset (loan) of more Rs 100 crore or more turns out to be a stressed asset. In other words, it can be said a tool by RBI for fighting the Non-Performing Assets (NPA) in the country. Under new norms, any resolution plan agreed to by 60% of creditors by value and 50% creditors by number in a joint lenders’ forum is binding on everyone in the group and no bank board will have the power to overrule the decision.
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