As part of the Budget proposals, the Indian Banks' Association has also sought removal of GST on additional interest charged in case of defaults.
The IBA said banks that enter into resolution deals with stressed borrowers often receive land, buildings etc in settlement of such debts. While banks have a strict mandate from the RBI to dispose of such non-banking assets in a time-bound manner, banks are unable to do a commercial price discovery due to the strict timelines put by the regulator.