RBI to expand oversight committee to deal with increasing bad loan cases

RBI says it sought information from banks on the current status of large stressed assets

The Reserve Bank of India (RBI) will add more members to a panel to deal with the large volume of cases involving stressed assets which are referred to it, highlighting its resolve to fight bad debt.

RBI today outlined the action plan to implement banking ordinance to deal with bad loans.

The two members of the Oversight Committee will continue to be a part of the panel, while the names of new members will be announced soon, the RBI said in a statement on Monday.

RBI said it sought information from banks on the current status of large stressed assets.

Indian banks have accumulated $133 billion in stressed assets after years of reckless lending.

The central bank is working towards ensuring an objective decision-making process on cases under the Insolvency and Bankruptcy Code, 2016 (IBC) and will form a separate panel, comprised mainly of its independent board members, to advise it in this regard, the RBI said.