According to the amendment in insolvency and bankruptcy code 2016, Govt. Permits RBI to issue direct

According to the amendment in insolvency and bankruptcy code 2016, Govt. Permits RBI to issue directions to PSBs to begin insolvency proceedings against stressed assets or companies. My query is why does Govt take RBI route, why can't it directly directs banks to begin proceedings in such cases. Given that govt holds majority stake in PSBs.

 

This is a valid criticism of the amendment....Since restructuring is a commercial decision of the affected psb,it shouldnt wait for rbi to specify resolution plans

 

The thing is rbi did delay its aqr exercise..it is also against exposure of defaulters' names....

 

Ok... RBI gave a reason for non disclosure of names of defaulters. And that was a genuine reason. I dont remember exactly what was the reason. That is why GoI is now forming a govt data repository for collecting such information from banks and regulators. What is the name of that data repository? Do u remember?

 

No genuine reason...rbi says it wil kill risk taking and entrepreneurship... ha...these are willing defaulters not genuinely bankrupt ones..

 

Already we have crilic for reporting exposures above 5 crore...

 

@Manish Lucky Saltu...not able to recall name . But its under process. Govt started on it just after refusal of RBI.

 

Its not only about directing but also guiding and taking all stakeholders on a table for deliberate discussion and resolution....

 

It is agreed tht Govt is major stakeholder in PSBs, but regulatory decision is within the ambit of RBI due to Banking regulation Act. Hence , any regulatory decision can be bettr implemented by RBI only . Moreover due to amendment bill ,2017 for Banking Regulation Act, RBI is especially empowered to do so i.e. regarding stressed assets....