RBI appoints three-member panel to advise Reliance Capital administrator

The constitution of new committee comes a day after the central bank superseded the board of Reliance Capital citing loan defaults and ‘serious governance concerns’ which the NBFC was unable to address.

The Reserve Bank of India (RBI) on Tuesday constituted a three-member Advisory Committee to assist Reliance Capital Administrator Nageswar Rao Y in discharge of his duties. The members of the Advisory Committee are Sanjeev Nautiyal, former deputy managing director (DMD) at State Bank of India, Srinivasan Varadarajan, former DMD of Axis Bank and Praveen P Kadle, ex-managing director and CEO at Tata Capital.

“It may also be mentioned that the Insolvency and Bankruptcy Rules, 2019 provide for the concerned financial sector regulator appointing a Committee of Advisors to advise the Administrator in the operations of the financial service provider during the corporate insolvency resolution process,” the RBI said in a release.

The constitution of new committee comes a day after the central bank superseded the board of Reliance Capital citing loan defaults and ‘serious governance concerns’ which the NBFC was unable to address.

Reliance Capital’s total declared financial indebtedness, including short- and long-term debt, was `21,781.01 crore, including interest accrued till October 31. Analysts estimate the consolidated debt at the NBFC at closer to `40,000 crore. Among its creditors are a couple of public sector banks.