RBI begins talks with stakeholders on debt recast plan

No timelines specified but there is a definite sense of urgency

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" decision-making 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.
 
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).