RBI names three other members in the Kamath committee on loan recast

The Reserve Bank of India (RBI) on Friday announced the members of the committees who would frame the rules for one-time restructuring proposed by the central bank on Thursday.

Veteran banker K V Kamath will be the chairman of the committee, as announced already. Other members will include former State Bank of India managing director Diwakar Gupta, effective September 1, after the completion of his term as Vice President, Asian Development Bank, T N Manoharan, effective August 14 after the completion of his term as chairman, Canara Bank, banking expert Ashvin Parekh, and the CEO of Indian Banks’ Association (IBA), as the member secretary.

The committee will also be fully empowered to consult or invite any person it deems fit, and can devise its own procedures for its internal functioning, the RBI said.

The expert committee will make recommendations on the required financial parameters to be factored in the resolution plans, with sector specific benchmark ranges for such parameters. The committee will also undertake the process validation for the resolution plans “without going into the commercial aspects,” of all accounts with aggregate exposure of Rs 1,500 crore and above at the time of invocation.

The committee will submit its recommendations on the financial parameters to the Reserve Bank which, in turn, will notify the same along with modifications, if any, in 30 days, the RBI said.