RBI Oversight Committee Gets New Chairman

Former chief vigilance commissioner Pradeep Kumar has been appointed as the chairman of newly re-constituted RBI’s Oversight Committee.

RBI has expanded its Oversight Committee by adding three more members, taking the total to five.

S. Raman and M.B.N. Rao, both former Canara Bank chairman and manging director, and former L&T Finance Holdings chairman Y. M. Deosthalee, are the new members. Former SBI managing director, Janki Ballabh, is the other member.

This high-level panel was formed to examine the process to resolve mounting bad loans in the banking sector.

The Oversight Committee will work through multiple benches as may be necessary and constituted by the Chairman to opine on the cases referred to it by the banks.

It also stated that the reconstituted Oversight Committee would also work with an expanded mandate to review, in addition to cases, which were restructured under the Scheme for Sustainable Structuring of Stressed Assets and resolution of other cases where the aggregate exposure of the banking sector to the borrowing entity is greater than Rs 500 crore.