Mumbai: The central bank is working on setting up a financial sector resolution corporation, said N.S. Vishwanathan, deputy governor, Reserve Bank of India (RBI).
We have discussed with the government the shape this corporation will take. Its purpose is to not only provide insurance to financial companies but also to provide resolution, Vishwanathan said at the Mint Annual Banking Conclave.
The deputy governor said that while non-financial sector companies had the Insolvency and Bankruptcy Code (IBC) to deal with resolution, the proposed corporation is likely to help protect financial sector companies.
In September 2016, a panel set up by the government had released a draft law on financial sector resolution.
This draft had s…
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