Asset reconstruction companies (ARCs) are asking the Reserve Bank of India (RBI) to review the recently prescribed norm that requires an independent advisory committee (IAC) to examine all settlement of dues with borrowers. This includes retail, SME and MSME loans, which they say are small and many in number. The ARCs are also appealing for a rollback of the October 2022 circular that stipulates settlements can be made only after all possible steps to recover dues have been exhausted.
The ARC lobby group has been asking the authorities to relax these norms for small-ticket loans. The process may be followed only in case of high-value corporate loans beyond a threshold.
Source:
Economic Times
