Money & Banking

AIBEA seeks reconstitution of KV Kamath’s resolution panel

Our Bureau | | Updated on: Dec 06, 2021

C.H. Venkatachalam, General Secretary, AIBEA

The All India Bank Employees’ Association (AIBEA) has sought a review of the Reserve Bank of India’s decision to appoint KV Kamath as head of an expert committee on resolution framework.

The RBI, last week, had set up a five-member committee under Kamath’s leadership to make recommendations on the required financial parameters to be factored in the resolution plans, which will be drawn up by lenders as part of a special window under the “ Prudential Framework on Resolution of Stressed Assets" .

The committee will come up with sector specific benchmark ranges for such parameters.

The appointment of this committee follows the central bank’s August 6 announcement that it will provide a window under the Prudential Framework to enable the lenders to implement a resolution plan in respect of eligible corporate exposures without change in ownership, and personal loans, while classifying such exposures as Standard, subject to specified conditions.

In a letter to RBI Governor Shaktikanta Das, AIBEA General Secretary CH Venkatachalam alleged that Kamath was also part of the committee, along with Chanda Kochhar (former MD & CEO), that approved loans to the Videocon Group.

Loans approved to the Group are now under the lens of the Central Bureau of Investigation.

“We hope and wish RBI to review the decision and reconstitute the Expert Committee,” Venkatachalam said.

Published on August 10, 2020
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