The Reserve Bank of India’s (RBI) new measure to tackle the pile of mounting bad loans in the banking system is not expected to be a game changer. The new norms (Scheme for Sustainable Structuring of Stressed Assets) address some of the issues faced in earlier strategic debt restructuring (SDR), where banks were unable to sell off the assets after taking management control of a company and converting debt into equity. However, this scheme also raises doubts on ever-greening of loans by banks, the practice of giving a new loan to repay an old one. Rating agency ICRA say that the move might help the reducing the reported level of gross non-performing loans by 30-100 basis points from the current 7.7 per cent as on end-March, after a lag of one year (following satisfactory performance of the sustainable debt portion). At the start, loans worth Rs 75,000-80,000 crore might be taken up for deep recast under new norms, analysts said. The challenge pointed out by bankers is that this scheme is only for projects that are operational. So, several projects in the power and the infrastructure space will be out. In Jammu and Kashmir, implementation by banks in consonance with RBI Master Directions on Natural Calamity has been initiated. A special meeting of J&K SLBC to discuss the relief measures for the borrowal accounts affected by the continued disturbances/ turmoil that has hit the State since July 8, 2016 was held at Jammu. The relief/ restructuring measures shall be framed by the individual banks in accordance to the extant guidelines contained in the Master Directions of Reserve Bank of India regarding Relief Measures by The house endorsed that Regional Rural Bank and Cooperative Bank operating in the State should also provide relief / restructuring measures to their affected borrowers in terms of the relative Master Directions of Reserve Bank of India. However, RRBs and Cooperative Banks were advised to send a formal request in this regard to Reserve Bank of India, Regional Office, and Jammu. Under the new scheme, banks will have to divide the existing debt of a company into ‘sustainable’ (the share which can be serviced by the company even if cash flow remains the same as now) and ‘unsustainable’. An independent oversight agency will ascertain the economic viability of a project and the resolution plan.