RBI constitutes committee under Kamath to suggest steps to deal with coronavirus-related stressed assets
New Delhi, Aug 8 (KNN) The Reserve Bank of India (RBI) has constituted the Expert Committee under the chairmanship of K V Kamath to suggest financial parameters for resolution of coronavirus-related stressed assets.
The committee will submit its recommendations to the apex bank, 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 August 6, 2020, the Reserve Bank has announced a ‘Resolution Framework for Covid19-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 shall 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 aggregate exposure of Rs 1500 crore and above at the time of invocation.
The other members of the Committee are as follow:
--- Diwakar Gupta (effective September 1, 2020, after the completion of his term as Vice President, ADB)
--- T.N. Manoharan (effective August 14, 2020, after the completion of his term as Chairman, Canara Bank)
--- Ashvin Parekh, Strategy Advisor (CEO, Indian Banks’ Association, as the Member Secretary)