Wednesday, June 15, 2016

Bank chiefs will not be questioned over NPA resolution decisions

Banks Board Bureau (BBB) Chairman has said that the Board will put in place a new "Intermediate Mechanism" that will provide cover to bank chiefs on their bad-loan resolution decisions.

The bankers, who are currently wary of accepting one-time settlements from promoters due to the Indian system's venerable 3Cs (CBI, CVC, and CAG, who can question their decisions even a few years later), will be protected by this 'intermediate mechanism'.

The intermediate mechanism to be put in place will only focus on the 'processes' undertaken in resolving NPAs and not the pricing decisions involved.

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