In a major development, the Reserve Bank of India (RBI) on Thursday announced the names of the members of overseeing committee (OC). According to RBI, the reconstituted overseeing committee will work with an expanded mandate to review cases being restructured under the scheme for sustainable restructuring of stressed assets (S4A). Overseeing committee will, for the present, have five members, including a chairman, and will work through multiple benches as may be necessary. Reconstituted OC will review resolution of cases where aggregate exposure of the banking sector to the borrowing entity is greater than Rs 500 crore.
Pradeep Kumar, a former vigilance chief, was named chairman of the five-member panel, which has three former bank chief executives and a leading corporate sector executive among its members. According the press released issued by RBI, the composition of OC will be as follows with effect from September 7, 2017: Pradeep Kumar (chairman), Janki Ballabh, M B N Rao, Y M Deosthalee, S Raman.
The panel will oversee restructuring of troubled loans, as it strives to cut more than $150 billion of bad debt in banks in Asia’s third-largest economy that have accumulated over the years.
Issuing a statement, RBI said, “The circular advising the banks of the above changes and other details of the process to be followed by banks for resolution of identified stressed assets within six months will be issued separately.