Kamath Committee Report - Get business & Product Information

Features

Invocation Date :

• May be invoked not later than Dec 31, 2020
• Resolution plan (RP) needs to be implemented within 180 days from the date of invocation

Signing of ICA and Provision requirement :

• Invoked once lenders representing 75% by value and 60% by number agree.
• Inter Creditor Agreement (ICA) to be signed by all lenders within 30 days of invocation.
• Lenders who have not signed ICA, to make a provision higher of 20% or as per IRAC norms, upon expiry of 30 days from invocation

Key guidelines :

• Residual tenor of loan may be extended by max 2 years with or without payment moratorium.
• Asset classification may be maintained as standard or upgraded to standard subject to the RP

Conversion of loans into securities :

• To include restructuring / regularization / change in ownership
• May provide for conversion of debt into equity or other marketable non-convertible debt securities provided amortization and coupon are similar to terms of debt

Post implementation :

• In respect of exposures, any default by borrower with any of the signatories to the ICA during the monitoring period shall trigger a Review Period of 30 days