NEW DELHI : The Reserve Bank has today constituted a three-member Advisory Committee to assist the Administrator of DHFL in discharge of his duties. The members of the Advisory Committee are Rajiv Lall, Non-Executive Chairman, IDFC First Bank Ltd; N S Kannan, Managing Director and CEO, ICICI Prudential Life Insurance Co; and NS Venkatesh, Chief Executive, Association of Mutual Funds in India.

On Wednesday, the RBI said it had superseded the board of DHFL and appointed R. Subramaniakumar, the former chief executive of state-run Indian Overseas Bank as the administrator.

The RBI said it was taking the decision "owing to governance concerns and defaults by DHFL in meeting various payment obligations".

The RBI’s decision on DHFL, the first of its kind, comes after the central bank earlier this month empowered the central bank to refer cases of stressed banking finance firms with assets of at least 500 crore to the insolvency court.

DHFL's owes its lenders nearly 1 lakh crore, including several mutual funds, banks, pension funds, insurance firms and retail investors.

The central bank's move on DHFL comes after a string of defaults by rival IL&FS last year, which triggered fears about contagion in the financial sector and forced the government to take over the lender.

With nearly 1 lakh crore owed to its staggering 85,000-plus list of financial creditors, DHFL's insolvency will be by far the largest process handled by tribunals in the three years since the bankruptcy code was enacted.

Its financial creditors range from banks to mutual funds and pension funds to deposit holders.

(With Agency Inputs)