Daily Current Affairs Quiz 2019<\/a><\/strong><\/p>\n\n\n\nThe central bank will be coming out with the final\nguidelines for private and foreign bankers’ compensation soon, he said,\nspeaking at the annual industry event Fibac.<\/p>\n\n\n\n
Vishwanathan said the RBI’s revised framework on resolution\nof stressed assets introduced on June 7 is “less intrusive” as it\ngives banks the leeway to draft their own resolution plans for a particular\ncase.<\/p>\n\n\n\n
“Timely resolution is very important. I’d request you\nto ensure that the resolutions are done in time, not just for the regulatory\nrequirement but also because it will result in better valuation going\nforward,” he said.<\/p>\n\n\n\n
“We’ve given a lot of freedom to banks to determine\nvarious contours. We are making less intrusive regulations and hope that banks\nwill use this to deal with genuine stress in their balance sheets to address\nthe problem,” he added.<\/p>\n\n\n\n
The RBI issued the new NPA recognition and resolution\nguidelines on June 7 after the Supreme Court had in April declared the earlier\none issued on February 12, 2018 as ultra vires.<\/p>\n\n\n\n
The new framework lays focus on better coordination between\nbanks while dealing with a stressed assets by mandating them to sign\ninter-creditor agreements and decide on a resolution strategy in 30 days, which\nwill have to be implemented in 180 days.<\/p>\n\n\n\n
Meanwhile, Vishwanathan also said the RBI will soon be\ncoming up with the final guidelines for top management compensation.<\/p>\n\n\n\n
“Last year we had issued draft guidelines on revised\ncompensation policy, aligning it with global guidelines. We have got excellent\ncomments from the market, bankers and HR practitioners and we will soon come\nout with final guidelines on the revised compensation policy,” he said.<\/p>\n\n\n\n
It can be noted that in the draft guidelines, the RBI had\nproposed measures including making 50 percent of the compensation of senior\nofficials of private and foreign banks ‘should be variable”.<\/p>\n\n\n\n
According to media reports, the central bank is also\nplanning a “clawback” clause, such that a key official has to pay\npast bonuses and incomes if she has been found to have erred in any aspect.<\/p>\n\n\n\n
Vishwanathan reiterated that the country has adopted a\nflexible approach when it comes to adopting the post global financial crisis\nregulations formed at the global level, which includes being conservative on a\nfew things and consciously deviating in others.<\/p>\n\n\n\n
The strategy is to “calibrate” the regulations in\nsync with the local requirements, he said, listing out the deviations which\nhave been opted for.<\/p>\n\n\n\n
The deviations include net stable funding ratio which has\nbeen deferred to April 2020, adopting group exposures framework in April 2020\neven after adopting the large exposure framework in April 2019.<\/p>\n\n\n\n
He said the biggest lesson from the crisis was the\nimportance of liquidity, and stressed that Indian regulators had always been\nvaluing the same for many years.<\/p>\n","protected":false},"excerpt":{"rendered":"
Reserve Bank of India(RBI) Deputy Governor N.S. Vishwanathan has urged banks for timely resolution of stressed assets in their \u2018own interest\u2019 under the new framework to extract the best value and underlined the need for dealing only in “genuine” cases. Daily Current Affairs Quiz 2019 The central bank will be coming out with the final […]<\/p>\n","protected":false},"author":13,"featured_media":5065,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[64],"offerexpiration":[],"class_list":["post-5064","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs-articles","tag-reserve-bank-of-india-current-affairs"],"_links":{"self":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/5064","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/comments?post=5064"}],"version-history":[{"count":1,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/5064\/revisions"}],"predecessor-version":[{"id":5066,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/5064\/revisions\/5066"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media\/5065"}],"wp:attachment":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media?parent=5064"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/categories?post=5064"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/tags?post=5064"},{"taxonomy":"offerexpiration","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/offerexpiration?post=5064"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}