SME Times News Bureau | 22 Jan, 2018
A top official from the
Reserve Bank of India (RBI) has viewed that there should be an online
platform for selling non performing assets.
Banks, asset reconstruction
companies and credit rating agencies can come together to set-up an
online platform for sale of NPAs, said RBI Deputi Governor Viral
Acharya.
According to Acharya, the platform will help India achieve a
"thriving market" for sale of NPAs.
"IBA
(Indian Banks' Association), ARCON (Association of Asset
Reconstruction Companies) and CRAs (credit rating agencies) can come
together to set up the equivalent of Loan Syndication and Trading
Association (LSTA) in the United States," Acharya said on
Saturday at an event held here.
The RBI official was
speaking at the inauguration of 'Assocham Arcon 2018 - ARCs: Emerging
avatar in new distressed landscape'.
"My
recommendation or at least I would encourage various players to
discuss whether there is value to building something like this as the
United States has built it over the period of time and South Korea
has built it during the crisis and then it became an industry
standard for doing loan sales thereafter," said Acharya.