To ensure a rapid resolution of troubled assets, some 22 public sector banks (including India Post Payments Bank), 19 private lenders and 32 foreign banks signed the Inter-Creditor Agreement (ICA) on Monday to quickly monitor the resolution of stressed assets. Finance Minister Piyush Goyal called the move a “big step forward” in the fight against non-performing loans from the banking sector. The agreement was also signed by 12 major financial institutions such as LIC, HUDCO, among others. This agreement is terminated if there is a guide or order from the RBI or other regulatory or government authority to terminate it. The ICA is signed by 22 public sector banks, including India Post Payments Bank, 19 private sector banks and 32 foreign banks. In addition, 12 major financial institutions, such as LIC and HUDCO, signed the agreement. On Monday, CNBC TV18 canceled the news that SBI and other major banks in the country have signed an agreement between creditors. What`s the point? In this regard, we will discuss in detail the new regulation of banks in India: the first review of progress under the inter-creditor agreement could be implemented after three months. 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. 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. It should be noted that the agreement or pact between creditors is denounced in certain situations, such as the direct intervention of the Reserve Bank of India. On July 23, 2018, Indian banks and financial institutions signed an agreement between creditors to accelerate the liquidation of stressed assets of 500 kronor or more under syndicated loans. The ICA was established in accordance with the recommendations of the Sunil-Mehta Committee and under the auspices of the Association of Indian Banks (IBA).
It is part of the Sashakt project, which aims to strengthen the credit capacity, credit culture and loan portfolio of public sector banks. The agreement was approved by the boards of directors of the lenders involved. The ICA was signed by 22 public sector banks, including SBI, PNB and India Post Payments Bank, 19 private banks and 32 foreign banks.