Kamath committee picks 26 sectors for loan restructuring, says RBI

News: Reserve Bank of India has released the K V Kamath-led Committee report and has broadly accepted its recommendations.

Facts:

  • Background: RBI had formed a five-member committee under the chairmanship of KV Kamath to make recommendations on the financial parameters and the sectors to be considered for the one-time restructuring of loans impacted by the Covid 19 pandemic.
  • What did the committee recommend? The committee has recommended five financial ratios for 26 sectors which could be factored by lending institutions while finalizing a resolution plan for a borrower.
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