Each lender ensures that at each lender`s meeting, it is represented by competent and competent people to make decisions on the spot without deferring them for internal authorization. “We finally have the banks that recognize the importance of working as a team to work together to find a solution to the banking problem and ensure an orderly flow of credit in the future,” he added. The Association of Indian Banks is expected to begin formal discussions with the wider banking fraternity over the next 14 days. “The three-month moratorium and the fact that a one-time restructuring may be necessary triggered this retrospective,” said a senior banker. Under current regulations, if the banks fail to find a solution, the issue is referred to the National Corporations Act… The Indian Banks` Association has adapted the Inter-Creditor Agreement (ICA) described by the Sashakt Committee to bring it into line with the Reserve Bank of India`s (RBI) revised guidelines on the dissolution of stressed assets announced on June 7. Adjust your preferences and receive a personalized story recommendation based on your interest. Business Standard has always strived to provide up-to-date information and feedback on developments that interest you and have broader political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our determination and commitment to these ideals. Even in these difficult times arising from Covid-19, we continue to commit to keeping you informed with credible news, relevant views and concise comments on current issues.
However, we have a request. In the fight against the economic impact of the pandemic, we need your even greater support so that we can continue to provide you with superior content. Our subscription model has seen an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve our goals, to offer you even better and more relevant content. We believe in free, fair and credible journalism. Your support with more subscriptions can help us practice the journalism we are committed to. Support quality journalism and subscribe to Business Standard. Digital Editor ICA signed on Monday: “In accordance with the recommendations of the Sunil Mehta Committee and under the auspices of the Association of Indian Banks (IBA), an inter-credit agreement (ICA) has been prepared to serve as a platform for banks and financial institutions to come together and take joint and concerted action to resolve stressed accounts.” “There have been many occasions when a good resolution plan, which would have helped save jobs, save domestic assets and recover large amounts of loans, has been blocked for months and years by one or two creditors,” he said. The revised ICA was distributed by the IBA to member banks and financial institutions. The ICA is signed by 22 public sector banks, including India Post Payments Bank, 19 private sector banks and 32 foreign banks.