The agreement, as proposed by the Sunil Mehta Committee, aligned its procedures with all the immediate laws, rules and regulations of the country and the RBI. The revised ICA was distributed by the IBA to member banks and financial institutions. “We finally have the banks that recognize the importance of working as a team to work together to find a solution to the banking problem and ensure an orderly flow of credit in the future,” he added. The agreement provides for the completion of the ICA by 22 public sector banks, including India Post Payments Bank, 19 private banks and 32 foreign banks. Other signatories to the agreement will be 12 leading financial institutions, such as LIC, Power Finance Corporation and Rural Electrification Corporation, etc. 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. The agreement will also allow lenders to move quickly and protect their interests. Under the agreement, dissenting lenders may exercise such a right of redemption for all facilities of other lenders concerned. The first review of progress under the creditors` agreement could be completed after three months. According to the ICA, “the spring lender, the lender with the highest exposure, is authorized to formulate the resolution plan subject to lender approval.” Decision-making is done by the approval of the “majority lenders”, who hold 66% of the total commitment. The ICA agreement covers cases of stressed assets worth at least 50 kronor in syndicated loans.
Under the ICA, which is part of the “Sashakt” project, each resolution plan is submitted by the lender on the merits to a supervisory committee. The pact gives the lead lender more powers in a consortium and allows approval of a resolution plan if 66% of the group`s banks agree. “… Finally, we have the banks that recognize the importance of cooperation as a team to work together to find a solution to the banking problem and ensure an orderly flow of credit in the future, so that we do not have to see the kind of problems that we inherited in 2014 with respect to a large number of NMAs, which cost the nation dearly and that have affected India`s credibility and have damaged the credibility of India. India. “,” Goyal said. The agreement, as proposed by a committee led by the President of the National Bank of Punjab, Sunil Mehta, is a “big step forward” in solving the problem of stressed assets and was developed under the Insolvency and Insolvency Act (IBC), Goyal Reporters said on the sidelines of a conference organized by the Confederation of All India Traders (CAIT). 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. Among the signatories were 12 major financial institutions such as the Life Insurance Corporation of India (LIC), HUDCO, PFC and REC were among the signatories on Monday. India`s banks and financial institutions (FIs) reached an inter-creditor agreement (ICA) on Monday to speed up the resolution of non-performing assets (NPAs) or non-performing loans from banks and ensure a smooth flow of credit, Acting Finance Minister Piyush Goyal said.