Day after announcing constitution of an expert committee on debt recast under veteran banker K V Kamath, Reserve Bank of India (RBI) on Friday released the names of the members who will submit recommendations on the financial parameters to it. The resolution framework envisages constitution of the expert committee by the RBI to make recommendations on the required financial parameters to be factored in the resolution plans, with sector specific benchmark ranges for such parameters.
"The Expert Committee shall 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 aggregate exposure of ?1500 crore and above at the time of invocation," RBI said in a statement on Friday.
The members include Diwakar Gupta (effective September 1, 2020, after the completion of his term as Vice President, ADB), TN Manoharan (effective August 14, 2020, after the completion of his term as Chairman, Canara Bank), Ashvin Parekh, Strategy Advisor and CEO of Indian Banks' Association, as the Member Secretary.
The committee will submit its recommendations on the financial parameters to the RBI which would notify the same along with modifications, if any, in 30 days, the central bank added. The Indian Banks' Association will function as the secretariat to the committee.
Meanwhile, in a relief to corporate and retail borrowers, the RBI yesterday permitted banks to go for one-time restructuring of loans that are facing stress due to the coronavirus 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.