RBI sets up panel under KV Kamath to suggest steps to deal with COVID-related stressed assets
Team Udayavani, Aug 7, 2020, 4:29 PM IST
Mumbai: The Reserve Bank of India (RBI) on Friday set up an expert committee under veteran banker K V Kamath to suggest financial parameters for resolution of coronavirus-related stressed assets.
The committee will submit its recommendations to the RBI, which will notify them along with modifications, if any, in 30 days.
As part of the Statement on Developmental and Regulatory Policies released along with the Monetary Policy Statement on Thursday, the RBI has announced a ”Resolution Framework for COVID-19-related Stress”, as a special window under the Prudential Framework on Resolution of Stressed Assets issued on June 7, 2019.
The resolution framework envisages constitution of an expert committee by the RBI to make recommendations on the required financial parameters to be factored in into the resolution plans, with sector-specific benchmark ranges for such parameters.
The expert committee will also undertake the process validation for the resolution plans to be implemented under this framework, without going into the commercial aspects, in respect of all accounts with an aggregate exposure of Rs 1,500 crore and above at the time of invocation.
The other members of the committee will be Diwakar Gupta (effective September 1, 2020, after the completion of his term as vice-president of ADB); T N Manoharan (effective August 14, 2020, after the completion of his term as chairman of Canara Bank); and Ashvin Parekh will be strategy advisor; and the Indian Banks” Association CEO will function as member secretary of the panel.
In a major relief to corporate and retail borrowers, the RBI on Thursday permitted banks to go for one-time restructuring of loans that are facing stress due to the COVID-19 crisis with a view to mitigating risks to financial stability.
The restructuring will be allowed as per the prudential framework issued on June 7, 2019, RBI Governor Shaktikanta Das said while announcing host of measures after meeting of the Monetary Policy Committee.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Met Dept forecasts thunderstorm in Udupi, DK and Kodagu dists on Monday evening
‘Variant of Concern’: All you need to know about the Indian variant of Covid-19
Police should show restraint in enforcing lockdown, says Min Bommai
Related Articles More
Flipkart to add 8 lakh sq ft warehousing space to strengthen grocery infrastructure
Sensex tanks over 450 pts in early trade; Nifty slips below 14,800
Sebi comes out with new proposal for segregation, monitoring of collateral at client level
Snapdeal launches Sanjeevani app to connect COVID patients with potential plasma donors
Ola to start doorstep delivery of oxygen concentrators to consumers
Telangana announces 10-day lockdown from May 12
Writer-actor Madampu Kunjukuttan dies of COVID-19
China warns of ‘substantial damage’ to relations if Bangladesh joins Quad
Active COVID cases down by over 30,000 in 24 hours first time in 61 days: Health ministry
Fmr Union Min Suresh Prabhu urges Sadananda Gowda to regulate prices, supply of Mucormycosis medicine