Union government to set up committee on Asset Reconstruction Company

Highlights:

  • Finance Minister Piyush Goyal announced setting up of a committee to give recommendations in two weeks on formation of an Asset Reconstruction Company for (ARC) faster resolution of stressed accounts
  • The committee under Sunil Mehta will make recommendations in two weeks on setting up of an Asset Reconstruction Company (ARC) or Asset Management Company (AMC) for faster resolution of stressed accounts.
  • The government “stands solidly behind each of the 21 public sector banks (PSBs)”.
  • He is presently the non-executive chairman of Punjab National Bank (PNB),
  • Most of the stressed assets have been identified that could fit into the ARC or AMC structure.
  • Also, banks will consider having oversight committees with external experts to help faster decision making and resolving stressed accounts in a transparent and speedy manner.
  • All bankers wished to set up a mechanism to enable faster resolution of stressed accounts.
  • All vacant positions of PSB heads will be filled in the next 30 days.
  • Suggestions about strengthening governance process and honest recognition of non-performing assets (NPAs) or bad loans were discussed at the meeting.