Securitisation involves pooling of loans and selling them to SPE, which then issues securities backed by loan pool...

Under this mechanism, curbs will be imposed on weaker entities if certain metrics breach thresholds set by the central bank...

A six member committee, headed by former RBI executive director Sudarshan Sen, said ARCs should be allowed to acquire stressed financial assets...

PCA was introduced in 2002 and revised in 2017 with three parameters to identify weak banks: capital adequacy, asset quality and profitability...

The new directive lays emphasis on transparency on transfer of loans that are not classified as stressed assets...

This panel was set up under the chairmanship of Sudarshan Sen, former executive director of the central bank...

Finance minister Nirmala Sitharaman had announced in the budget last month the creation of the ARC to take over the non-performing assets of domestic banks...

The entity will be in the form of an asset reconstruction company (ARC) and an asset management company (AMC)...

The norms come at a time banks are expected to sell more bad loans to such entities...