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RBI discusses debt recast plan with stakeholders

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After outlining a loan recast plan, the Reserve Bank of India (RBI) has begun a dialogue with stakeholders to work on their role details and timelines. There is a sense of urgency, though no timelines have been specified as of now. This was the first meeting after the RBI’s statement on steps on a prompt resolution of troubled assets.

After outlining loan recast plan, Reserve Bank of India (RBI) has begun dialogue with stakeholders, including bankers and insolvency professionals, to work on their role details and timelines.

There is a definite sense of urgency, though no timelines have been specified as of yet. This was the first meeting after RBI's statement on Monday on future steps for prompt resolution of troubled assets, banking sources said.

RBI is expected to grow a framework for an "objective and consistent" decisionmaking process for resolution under the Insolvency and Bankruptcy Code, 2016.

RBI's plan includes reconstituting oversight committee (OC).

Banking sources said rating agencies may work in advisory capacity, giving reports on restructuring work and perhaps monitoring work on the package of each case.

The central bank will reconstitute the OC and expand the panel to include more members. The existing OC, which has two members, was constituted by the Indian Banks' Association.

Business Standard New Delhi, 27th May 2017

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