RBI asks ARCs to share data with information utilities under insolvency proceedings
Mumbai: Reserve Bank of India Thursday directed asset reconstruction companies (ARC) to submit financial details of assets under insolvency proceedings to information utilities (IU).
Other RBI-regulated entities are already been directed to share such data.
Information utilities, under the Insolvency and Bankruptcy Code 2016, are envisaged to collate all information about debtors, accessible for a fee.
These databases maintained by the IUs seek to prevent serial defaulters from misusing the system and keep to the strict timelines of the Code. The corporate insolvency resolution process prescribes a time limit of 180 days to conclude proceedings. Information utilities are critical to this.
ARCs, who are the financial creditors in the insolvency proceedings, have been active in filing petitions under IBC. They are also collating loans from other financial creditors such as banks to take higher voting right in the committee of creditors, which approves the resolution plan, according to industry experts.
In September 2017, the Insolvency and Bankruptcy Board of India (IBBI) registered National E-Governance Services Limited (NeSL) as the first IU.
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