The Indian Banks` Association (IBA) on Tuesday published a revised draft Inter-Creditor Agreement (ICA), in line with the Reserve Bank of India`s revised circular on the “prudential framework for the resolution of stressed assets,” so that bankers can start liquidating stressed specific accounts. “… After these lenders join this agreement, they are bound by the terms and conditions of this agreement as “lenders” and acquire the same rights and obligations that they would have acquired and assumed had that lender, as a lender, been an initial party to this agreement,” the ICA document states. The Indian Banks` Association has adapted the Inter-Creditor Agreement (ICA) described by the Sashakt Committee to bring it into line with the Reserve Bank of India`s (RBI) revised guidelines on the dissolution of stressed assets announced on June 7. The government has taken a number of steps to help revive stalled projects. A project monitoring group has been set up as an institutional mechanism to address a wide range of problems, including the acceleration of approvals. As of 1.1.2019, more than 3,191 questions raised on the PMG portal concerning 725 expected investment projects of 29.88 aff. and 513 inter-ministerial meetings and 247 meetings with the Chief Secretary of States were held to resolve related issues and sharing. In addition, interdepartmental groups have been formed by the ministries of shipping, textiles, energy, telecommunications, renewable energy and SMEs to examine systemic issues affecting the viability and reimbursement capacity of sectors. A senior IBA official said: “We have released the revised ICA so that bankers can immediately start working on some cases. Irrespective of the signatories of the former ICA, all banks will sign the facts on a case-by-case basis. As soon as the revised master`s letter expires, all interested banks will sign the agreement. Following the Reserve Bank of India (RBI) circular of 7 June, the Association of Indian Banks (IBA) drew up an agreement between creditors (ICA) to set the ground rules for the resolution of OVER-the-counter assets.

All lenders must sign the agreement between creditors in accordance with the new RBI guidelines, subject to a board decision. Each lender ensures that at each lender`s meeting, it is represented by competent and competent people to make decisions on the spot without deferring them for internal authorization. Adjust your preferences and receive a personalized story recommendation based on your interest. In accordance with the Reserve Bank of India`s (RBI) Prudential Framework for Resolution of Stressed Assets, the Association of Indian Banks (IBA) has entered into an agreement between creditors (ICA) that provides details on lender meetings, voting issues, payments to dissenting lenders and additional financing. The document also states that lenders whose credit facilities are not denominated in Rube, but who wish to become parties to the agreement, need appropriate authorizations and authorizations from the relevant government authority, including the RBI. Or the lender could enter into any other agreement, including the refinancing of its loans with loans denominated in Indian rupees, on the basis of what is necessary for the effective implementation of a resolution plan. The new agreement replaces the ICA for the settlement of the most stressed assets of July 23, 2018 and “could be accepted by lenders on a case-by-case basis,” says a letter from the IBA attached to the revised ICA project.