On 12.2.2018, the Reserve Bank of India (RBI) issued a revised Framework. The RBI reported that, in its decision of 2.4.2019, the Supreme Court referred to the above circular as non-is, which necessitated the issuance of a revised circular for the prompt and effective resolution of stressed assets. The RBI also reported that, in this context, the RBI issued a “Prudential Framework for Resolution of Stressed Assets” on 7.6.2019 for the early determination of stressed assets, giving lenders full latitude to design and implement resolution plans, while providing additional deterrence measures to delay the implementation of the resolution plan or the initiation of an insolvency procedure. and to make it mandatory to sign an agreement between creditors that provide for majority decisions by all lenders. In accordance with contributions received by the Association of Indian Banks (IBA), the Prudential Framework published by the RBI made it mandatory, in the circular of 7.6.2019, to sign an inter-creditor agreement prior to the drafting of the motion for a resolution for a fixed account and, in this context, the IBA drew up an agreement between the creditors and disseminated it to its member banks in order to facilitate the resolution process. The IBA also found that this draft agreement did not refer to a particular sector, including the energy sector. The revised RBI standards require lenders, including financial institutions and small financial banks, to enter into an agreement between funds (ICA) within 30 days of a default, known as an “audit period” in which lenders control an account and decide on a resolution strategy. A senior IBA official said: “We have released the revised ICA so that bankers can immediately start working on some cases. Irrespective of the signatories of the former ICA, all banks will sign the facts on a case-by-case basis. As soon as the revised master`s letter expires, all interested banks will sign the agreement. Following the Reserve Bank of India (RBI) circular of 7 June, the Association of Indian Banks (IBA) drew up an agreement between creditors (ICA) to set the ground rules for the resolution of OVER-the-counter assets. All lenders must sign the agreement between creditors in accordance with the new RBI guidelines, subject to a board decision. The document also states that lenders whose credit facilities are not denominated in Rube, but who wish to become parties to the agreement, need appropriate authorizations and authorizations from the relevant government authority, including the RBI.
Or the lender could enter into any other agreement, including the refinancing of its loans with loans denominated in Indian rupees, on the basis of what is necessary for the effective implementation of a resolution plan.