The Reserve Bank of India (RBI) has announced the formation of a five-member expert committee to recommend parameters related to the debt recast window and vet resolution plans of Rs 1,500 crore and more. The central bank said the committee will submit its recommendations on the financial parameters to RBI which, in turn, shall notify the same along with modifications, if any, in 30 days. Headed by veteran banker KV Kamath, the committee will have four other members – Diwakar Gupta, whose term will be effective 1 September, after the completion of his term as vice-president, ADB; TN Manoharan, term effective 14 August, after the completion of his tenure as Canara Bank chairman; Ashvin Parekh, managing partner, Ashvin Parekh Advisory Services LLP as the strategic advisor and the chief executive of Indian Banks’ Association (IBA), as the member secretary. Sunil Mehta, former head of Punjab National Bank is at present the chief executive of IBA.

Lobby body IBA will function as the secretariat to the committee and the committee is free to devise its own procedures for its internal functioning.

‘The committee will function under the aegis of RBI, and accordingly, the expenses of the committee and its secretariat will be fully borne by RBI. The composition of the committee may be expanded and other members may be added as and when necessary,’ it said.

Having learnt lessons in the last round of regulatory forbearance, the RBI has put in place several additional safeguards, including the setting up of this expert committee to suggest financial parameters that must be factored into resolution plans.