Mumbai, Sept. 12: The Reserve Bank will set up a database on large borrowers with an exposure of more than Rs 10 crore to help banks deal with defaults.
The measure is part of a road map laid out by new RBI governor Raghuram Rajan to nurse banking back to health. Rajan, who had expressed concern about the rising non-performing assets, had said the RBI would collect credit data and examine large common exposures across banks.
In a notification issued on Wednesday, the RBI said it would create a central repository on large borrowers — both individuals and entities — with an exposure of more than Rs 10 crore. This data will be shared with banks so that they can identify common exposures.
“Accordingly, it has been decided to use the information supplied by banks through the Return on Large Borrowers (Form A)...which captures system-wide exposure of individuals and entities having exposure of more than Rs 10 crore, for the creation of a central repository of large credits across banks,” it said.
Returns received from banks include their assets, liabilities and off-balance sheet exposures apart from the exposure to sensitive sectors. Such data have helped policy makers to refine their regulatory and monetary policies.
The RBI has warned banks to take utmost care while submitting data or face penal action.
The RBI today set up a committee to suggest ways to revise and strengthen the monetary policy framework to make it “transparent and predictable’’.
The panel will identify regulatory, fiscal and other impediments to monetary policy transmission and recommend steps to improve transmission across financial market segments. Rajan had earlier said the panel would be headed by RBI deputy governor Urjit Patel.
• RBI to create repository on large borrowers with an exposure
of over Rs 10 crore
• Credit data to be shared with banks to identify common exposure
• Expert panel set up to strengthen monetary policy
• Panel to identify regulatory and
fiscal impediments and recommend steps to improve policy transmission