Centre starts work to restore power of PSBs to issue look-out circulars

The government and banks sought advice from attorney general R Venkataramani to regain public sector banks' power to issue look-out circulars against defaulters. Consultations with stakeholders and potential legal amendments are underway. Courts have previously ruled against banks issuing LOCs independently. A swift resolution is expected by involving the banking regulator, RBI, and possibly the Supreme Court.