RBI's one-day default norms had put companies in a fix: Sunil Mehta

PNB chairman Sunil Mehta, who conceptualised the inter-creditor agreement adopted by RBI, says the central bank's new circular on resolving stressed assets is practical.

The Reserve Bank of India has released a new circular on resolution of stressed assets after its previous circular was quashed by the Supreme Court. Punjab National Bank Chairman Sunil Mehta, who conceptualised the inter-creditor agreement made compulsory by the RBI, in a telephonic interview tells Somesh Jha how the new norms can be rolled out immediately with a set mechanism in place:

The RBI has taken leaf out of the books of the Sashakt scheme to ask banks for an inter-creditor agreement (ICA). How do you see it?

I don’t take credit for Sashakt alone as the