New Delhi: The Association of Bank India (IBA) has transferred the application to the RBI which is looking for a license to establish a National Asset Reconstruction Company 6,000 Crore (NARCL) or Bad Bank, in accordance with the source.
NARCL was included last month in Mumbai after registration with a company registrant (ROC).
According to sources, the company after mobilizing the initial capital of Rs 100 Crore and fulfilling other legal formalities has approached the RBI seeking a license to do business reconstruction assets.
RBI In 2017, increasing capital requirements to Rs 100 Crore from the previous level of Rs 2 Crore, given the higher amount of cash needed to buy a bad loan.
The RBI has a procedure to provide a license for the business, said the source, adding, it can take several weeks to get a license from the regulator.
Iba, assigned to set up a poor bank, had placed the initial board for NARCL in place.
The company has rented P M Nair, a stressful asset expert from SBI as MD.
Other directors on the council are CEO of Iba Sunil Mehta, SBI Deputy MD S Nair and Canara Bank CGM Ajit Krishnan Nair.