- RBI had set up the K.V.Kamath Committee to provide Sector-specific recommendations since it had announced a one-time loan recast for borrowers hit by the COVID-19 pandemic.
- Accordingly, the committee is set to submit its report on loan restructuring to the Reserve Bank of India (RBI).
- It is understood to have identified six problem sectors, among them being aviation, real estate, automobiles, infrastructure and power.
- The committee has suggested solutions for 29 of the 307 sectors it assessed.
- Also, the panel is understood to have suggested that the two-year cutoff for the restructuring will begin after implementation of the resolution plan.
- Further, RBI is expected to announce the loan restructuring guidelines this month, once the Governor and Deputy Governors examine the committee’s recommendations.
- RBI had tasked the committee with giving sector-specific recommendations following its announcement of a one-time loan recase for borrowers hit by the Pandemic.
- RBI circular issued last month had stated that restructured loans could have easier repayment terms for a period of upto 2 years.