RBI refuses to be part of a panel on power sector

New Delhi: The Reserve Bank has refused to be part of a high-level committee headed by the Cabinet Secretary which was constituted to resolve stress in the power sector as it is not willing to relax norms to deal with bad loans, according to a source.

"The RBI has shown its unwillingness to attend the meeting of the empowered committee to resolve stress in power sector. 

Their representatives did not attend the first and second meeting of the panel held on August 31 and September 14," the source said. 

"The central bank has given its own reasons for its refusal to attend meetings of the committee. 

RBI has made its stand clear in courts that they would not relax the new framework to resolve bad loans. 

Moreover, RBI is not ready to relax norms for setting up an asset reconstruction company for warehousing stressed projects to prevent distress sale," the source added. 

The RBI has maintained its stand in various courts, including the Supreme Court, and the matter is still sub-judice.