RBI accepts Kamath panel suggestions on resolving Covid-linked stress

The Reserve Bank said that it has broadly accepted the recommendations of the KV Kamath-led Expert Committee on Resolution Framework for Covid-19-related stress.

The expert committee has recommended financial parameters including aspects related to leverage, liquidity and debt serviceability. It has suggested financial ratios for 26 sectors, including auto, aviation, manufacturing, real estate, consumer durables, hotels, restaurants and tourism among others.

The panel has recommended that the resolution framework should be invoked by December 31, 2020. The residual tenor of the loan may be extended by a maximum two years, with or without payment moratorium.