The Insolvency and Bankruptcy Code (IBC) aims at time-bound and market-linked resolution of stressed entities
On transmission of monetary policy, he said the banks cannot lower rates beyond a threshold due to asset liability mismatch issues.
The meeting focused on credit flow to the 'productive sectors' which include micro, small and medium enterprises and non-banking financial companies
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The Reserve Bank of India should carry out an asset quality review of the non-bank finance companies, Rajan said.
It is the housing segment that presents "the maximum amount of stressed assets", Nair said
Loans of over Rs 1.8 trillion, for which agreement has been signed by banks, are likely to be referred to IBC
Blames lack of it for elevated levels of NPAs, capital shortfalls, fraud
A case is taken up for resolution under the law only after approval from the National Company Law Tribunal (NCLT)
Most of the assets picked up by ARCs are corporate loans
RBI issued the new NPA recognition and resolution guidelines on June 7 after the Supreme Court had in April declared the earlier one issued on February 12, 2018 as ultra vires
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Companies seek returns of over 20 per cent but RBI has put restrictions on yields and tenure
Recognition of stress in itself may result in higher provisioning
While coming up with a revised framework for resolution of stressed assets, the regulator should be careful of the potential for other legal challenges, say experts
Reserve Bank of India (RBI) Governor Shaktikanta Das last month had said there would be no changes in the circular
The bulk of accounts up for sale by SBI are of small and medium enterprises that have dues amounting to Rs 4,667 crore
In October, the IBA had circulated the final operating guidelines for the bank-led resolution process and had received approval from several lenders
Over 3,500 cases have been resolved at a pre-admission stage and resulted in claims worth Rs 1.2 trillion getting settled
Mehta said the committee is now in talks with potential sponsors for the AIF