The RBI will also expand the scope of cases to be referred to the OC beyond those under S4A (Scheme for Sustainable Structuring of Stressed Assets) as required.
It is also developing a framework for an “objective and consistent” decision-making process for resolution under the Insolvency and Bankruptcy Code, 2016 (IBC).
To resolve the bad loan problem plaguing the banking sector, the Reserve Bank of India (RBI) outlined the further steps.
It plans to take, the oversight committee (OC) and its mandate, modifying existing debt recast rules, and engaging rating agencies for timely action.
The central bank will reconstitute the OC and expand the panel to include more members.
He existing OC, which has two members, was constituted by the Indian Banks' Association.
The RBI will also expand the scope of cases to be referred to the OC beyond those under S4A (Scheme for Sustainable Structuring of Stressed Assets) as required.
It is also developing a framework for an “objective and consistent” decision-making process for resolution under the Insolvency and Bankruptcy Code, 2016 (IBC).
The banking regulator also sought information on the current status of the large stressed assets from the banks.
The RBI further said the enhanced empowerment would require coordination with and the cooperation of several stakeholders.