Govt may soon approve proposed bad bank, though with some riders
In the first phase, 70-80 stressed assets worth Rs 500 crore and above will be taken over by the ARC, adding up to about Rs 3 lakh crore of bad loans.
Synopsis
The rider is to ensure that non-performing assets (NPAs) are not sold at inflated prices. Also, the government will offer a sovereign guarantee to security receipts (SR) issued by the ARC only when the asset is bought under a certain haircut band.
The government is expected to soon clear the proposed asset reconstruction company (ARC) that will take over stressed debt, though the promised sovereign support for the bad bank is likely to come with some riders.
RBI panel on ARCs invites views from market participants, other stakeholders
The committee will review existing legal and regulatory framework applicable to ARCs and recommend measures to improve their efficacy. It ll also review the role of ARCs in resolution of stressed assets, including under IBC
BusinessToday.In | April 28, 2021 | Updated 15:13 IST
The panel will be headed by former RBI executive director Sudarshan Sen
The Reserve Bank of India (RBI) has said the committee on Asset Reconstruction Companies (ARCs) has invited views and suggestions from market participants and other stakeholders. The RBI on April 7 announced the setting up of a committee to undertake a comprehensive review of the working of ARCs in the financial sector ecosystem.
Industry in recovery mode, several Budget proposals on course: Nirmala Sitharaman
Nirmala Sitharaman said Budget proposals with regard to disinvestment and setting up of Development Finance Institution (DFI) are on course
PTI | April 23, 2021 | Updated 08:59 IST
Union Finance Minister Nirmala Sitharaman
Finance Minister Nirmala Sitharaman on Thursday said the industry is in recovery mode and several Budget proposals are on course, including disinvestment, despite a fresh wave of coronavirus infections and local lockdowns.
The government, the minister said, has been taking steps to deal with the second wave of COVID-19 with regard to supply of medicines and oxygen.
While the second wave of the pandemic has been challenging on many levels, the government has been taking decisions, including on import of medical oxygen, and boosting supply of medicines, she said at a webinar organised by the Financial Times and The Indian Express.
Industry in recovery mode, Budget proposals on course: Nirmala Sitharaman indiatimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from indiatimes.com Daily Mail and Mail on Sunday newspapers.
RBI forms panel to review ARCs, mould them to suit financial sector needs
The committee will review existing legal and regulatory framework applicable to ARCs and recommend measures to improve their efficacy, and their role in resolving stressed assets
BusinessToday.In | April 20, 2021 | Updated 00:48 IST
The Reserve Bank of India has formed a committee to review the way asset reconstruction companies (ARCs) function in the financial sector and recommend measures to reform them according to the growing requirements of the financial sector. RBI Governor Shaktikanta Das had announced after the monetary policy committee meeting earlier this month that such a panel was in the work.