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RBI Ordinance will prod banks to come to timely decisions

The ordinance empowering the Reserve Bank of India gives the much-needed comfort to bankers in resolving the bad loans mess. What's happening currently is that resolutions are moving, and even where resolutions are taking place, banks are taking a long time to decide and implement the decision. So, what it basically does is, it authorises the government to empower RBI to issue a set of directions to the banks. Partly those directions are around speed of decision making. We expect RBI to create more oversight committees and widen their scope so that all types of restructuring are covered.

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