ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Stock Market Outlook: Our dependence on US market limited now, next 10-15 years belong to India, says Anil Singhvi | Here's why
  • Toyota Hyryder Unveiled: Toyota India unveils new self-charging hybrid electric SUV in India; check details
  • Virtual Digital Assets: VDAs to attract 1% TDS from today; know what CBDT says about new norms
  • Gold Price Today: Yellow metal surges by over Rs 1000 as excise duty hiked to 12.5% - check gold rate in your city
  • Monsoon session of Parliament to begin on July 18; to end on August 12
Read in App
Business News » India News

RBI's new framework to expedite resolution of stressed assets

The mandatory norm of inter-creditor agreement allows banks to decide resolution strategy outside the IBC and it will help lenders to accelerate process to resolve stressed assets, Sashakt committee on bad loans said Monday. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
RBI's new framework to expedite resolution of stressed assets
The mandatory norm of inter-creditor agreement allows banks to decide resolution strategy outside the IBC and it will help lenders to accelerate process to resolve stressed assets. Reuters

The mandatory norm of inter-creditor agreement allows banks to decide resolution strategy outside the IBC and it will help lenders to accelerate process to resolve stressed assets, Sashakt committee on bad loans said Monday. "The requirement of entering into the Inter-Creditor Agreement is an endorsement by the RBI of the need for the lenders to have a framework for resolution outside IBC," the committee headed by PNB non-executive Chairman Sunil Mehta said in a release. The members of the panel that works toward faster resolution of stressed assets in public sector banks include SBI Chairman Rajnish Kumar, Bank of Baroda MD & CEO P S Jayakumar and SBI Deputy Managing Director Venkat Nageswar.

The Reserve Bank on Friday had replaced a tough norm on NPA categorisation by lenders, as it was quashed by the Supreme Court in April, and provided banks additional period of 30 days to declare an account as dud.  The apex bank had issued a circular in February for resolution of bad loans under which a loan account could be categorised an non-performing asset (NPA) if it missed repayment for a day. Under this, the banks were supposed to find a resolution within 180 days or else the case be sent to the bankruptcy courts. "The Sashakt Committee recommends the existing ICA agreement executed by 35 banks/FI's under the aegis of Indian Banks' Association (IBA) be adopted to incorporate the revised voting threshold / other changes for decision making stipulated by the RBI.

It will enable expeditious implementation of the new framework," the release said."The new framework is pragmatic and a step in the right direction. It takes care of all stakeholders interests," Mehta said. The SBI chairman said the RBI's new framework recognizes the need for bank-led resolution framework and also provides regulatory sanction for it. "This will expedite resolution of stressed assets given the revised voting thresholds and the requirement that all banks, NBFCs and ARC are mandated to join the ICA," Kumar said.

Bank of Baroda MD said the new framework provides flexibility to lenders to adopt any resolution plan on a case specific basis. "The mandatory requirement for an Inter-Creditor Agreement will ensure that resolution efforts can be implemented by building adequate consensus as unanimity is hard to achieve and may not be timely," said L Viswanathan, Partner at law firm Cyril Amarchand Mangaldas who advised the Sashakt Committee on the Inter-Creditor Agreement. 

 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Reserve Bank of IndiaIBCBank of Baroda
Written By: PTI
Updated: Mon, Jun 10, 2019
09:03 pm
New Delhi, PTI
RELATED NEWS
Big tech firms offering financial services pose risk to financial stability: RBI Big tech firms offering financial services pose risk to financial stability: RBI
Fintech's halt PPI loan, buy now pay later services as RBI restrictions posing challenges Fintech's halt PPI loan, buy now pay later services as RBI restrictions posing challenges
RBI extends implementation of card tokenisation norms by 3 months; deadline extended till 30 September RBI extends implementation of card tokenisation norms by 3 months; deadline extended till 30 September
RBI stops non-bank PPI issuers from loading wallets, cards via credit lines RBI stops non-bank PPI issuers from loading wallets, cards via credit lines
First tranche of 2022-23 gold bonds to open for subscription on Jun 20 First tranche of 2022-23 gold bonds to open for subscription on Jun 20

LATEST NEWS

Stocks to Buy: Sanjiv Bhasin recommends Aarti Industries, Bank of Baroda, Tata Steel; Know the details

Oppo Reno 8 series India launch confirmed; likely to release on July 21 - Check details

UPI transactions remain above Rs 10 lakh crore in June for second month in a row: NPCI data

Virtual Digital Assets: VDAs to attract 1% TDS from today; know what CBDT says about new norms

Rupee VS Dollar: Rupee gains 12 paise to close at 78.94 against US dollar

''Increase in import duty on gold, will not have major impact on demand''

WhatsApp: Here is why over 19 lakh Indian accounts banned in May

Ahmedabad most affordable housing market among top 8 cities, says report

June GST collection at Rs 1.44 lakh crore; 2nd highest since implementation

Rupee hits record low of 79.11 against US dollar in early trade

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV