RBI keen to make AMCs insurers part of ICA

first_imgMumbai: To further ease the resolution of stressed assets, the Reserve Bank is in discussions with its counterparts Sebi and Irdai to allow asset management companies and insurers to become part of the inter-creditor agreement (ICA), something that is mandatory for resolving stressed assets.In the revised circular on the framework for resolution of stressed assets, issued on June 7, the RBI made signing of an inter-creditor agreement by all lenders mandatory, to arrive at a majority decision-making criteria for resolving stressed assets. “In the June 7 circular, we have made ICA mandatory. Also Read – Thermal coal import may surpass 200 MT this fiscalBut it has been learnt that while dealing individual cases, banks have found that a good portion of the outstanding of individual corporates or entities are from insurance companies and mutual funds,” governor Shaktikanta Das told reporters after the post policy announcement. But the present rules do not consider AMCs and insurance companies as financial creditors; therefore the planned changes. He said it is necessary to look at the whole situation, liability of the entity comprehensively and not only from the bankers’ eye. Das said RBI have had inter-regulator meeting at a very senior levels from senior members from Sebi and Irdai. “Irdai has taken a decision to enable the insurance companies to be part of the ICA. Our discussion with the other regulator is ongoing,” the governor said.last_img

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