The Reserve Bank of India has reconstituted the oversight committee in the light of the Banking Regulation Ordinance 2017 to include more members so that the it can constitute requisite benches to deal with the volume of cases referred to it. The committee set up the Indian Banks Association had 2 members. RBI said it will now work under its supervision and while the current members will continue in the reconstituted committee, new names will be announced soon. Along with this measure, RBI also said it is intending to give bigger role for credit rating agencies and formation of a committee of its independent board members to bring down the increasing NPAs in the banking system. The regulator also said it has sought information on the current status of the large stressed assets from the banks and it will soon set up a committee constituting mostly its own independent board members to advise it in the matter. It is also expected to expand the scope of cases to be referred to the oversight committee beyond those under the Scheme for Sustainable Structuring of Stressed Assets as required currently.
