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Letters to The Editor — October 26, 2023

Letters to The Editor — October 26, 2023
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Open to look at proposal for setting up bad bank: RBI - The Hindu BusinessLine

January 16, 2021 Proposals in this direction from as far back as 2016-17 remain only on paper yet The Reserve Bank of India (RBI) is open to looking at any proposal for setting up a bad bank, according to Reserve Bank of India (RBI) Governor Shaktikanta Das. “A bad bank has been under discussion for a very long time. We have regulatory guidelines for Asset Reconstruction Companies (ARCs). If any proposal (for setting up a bad bank) comes, we are open to examining it and issuing required regulatory guidelines,” Das said in an interaction with participants after delivering the Nani Palkhivala Memorial Lecture.

Bad banks I RBI Governor says open to bad bank proposal—know what it is

Updated Jan 16, 2021 | 15:18 IST | Manu Kaushik Governor Shaktikanta Das said RBI will look into a band bank proposal if it is presented. The move is presented as a way to improve the health of PSU banks in India by addressing their bad loans problem. Mumbai: Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday said the central bank would consider the idea of a bad bank if a proposal is made. During the press conference on the sidelines of Nani Palkhivala Memorial lecture, Das added that the government and private sector may have to work on it together.  “If there is a proposal to set up a bad bank, the RBI will look at it. We have regulatory guidelines for asset reconstruction companies (ARCs). We are open to looking at any proposal to set up a bad bank. If any proposal comes, we are open to examining it, he said.

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