The weighted average deposit rate is the weighted average of the interest rates on deposits (demand deposits, term deposits and resident foreign currency deposits) using the share of the corresponding deposit amount in total deposits as a weighting. Such an agreement could persuade banks to launch a resolution plan for non-performing assets more quickly. This is an improvement over the previous model, which relied solely on the Joint Lenders Forum to reach consensus among creditors. It makes sense for joint lenders who want to avoid a stalemate to agree on the basic rules of debt resolution before lending to a borrower. However, the obligation of the lead creditor to provide a time-bound resolution plan may have unintended consequences. Banks may be forced to participate in a rapid sale of non-performing assets due to arbitrary timelines for the resolution process. This will go against the interests of lenders who want to get the best price on their stressed assets. In addition, it is often in the interest of the majority of creditors to take the time to get the most out of their assets. Meanwhile, the biggest obstacle to settling non-performing loans is the lack of buyers who can buy stressed assets from banks and the reluctance of banks to sell their loans at a high discount to their face value. If the government cannot solve this problem, the problem of bad debts may remain unresolved for some time to come. The reverse repurchase rate is the interest rate at which planned banks lend to each other against approved government bonds (treasury bills and PIBs).

In recent years, Indian banks have been forced by the Reserve Bank of India to identify problematic assets on their books, but their resolution remains a challenge. According to banker Sunil Mehta, who chaired a panel recommending the plan, disagreement between joint lenders is the main problem in resolving distressed assets. The government hopes that the problem of resistance, for which the objections of some lenders prevent an agreement between the majority lenders, will be solved by the agreement between the creditors. 37. The company approved an agreement between India and Jordan on customs cooperation and mutual administrative assistance In accordance with the Reserve Bank of India (RBI) Supervisory Framework for distressed asset resolution (RBI), the Association of Indian Banks (IBA) has entered into an intercredit agreement (ICA) that includes details on donor meetings, coordination issues, payments to derogating lenders and additional financing. The government has taken a number of steps to revive stalled projects. A project monitoring group has been set up as an institutional mechanism to address a wide range of issues, including the acceleration of approvals. As of January 1, 2019, more than 3,191 questions have been asked on the PMG portal about 725 expected investment projects of 29.88 aff. and 513 inter-ministerial meetings and 247 meetings with the Secretary-General of States were held to resolve issues and related exchanges.

In addition, cross-sectoral groups have been formed by the Ministries of Merchant Marine, Textiles, Energy, Telecommunications, Renewable Energy and SMEs to address systemic issues affecting the viability and repayment capacity of sectors. After a complete overhaul of the banking system as part of the government`s 4R approach to recognition, resolution, recapitalisation and reform, the proposed recapitalisation would allow banks to develop financial standards that exceed global standards. The country`s creditors have signed an agreement among themselves known as the Inter-Creditor Agreement (ICA) to give the consortium`s lead lender the power to develop a resolution plan for the encumbered assets. Restrictive monetary policy refers to the actions of the central bank aimed at reducing the liquidity of the system or raising the key interest rate and thus other interest rates. Contractionary monetary policy, also known as monetary tightening or a restrictive monetary policy stance, is generally adopted by the SBP to contain inflationary pressures in the economy. The sensitive price indicator (SPI) is calculated weekly to assess the price movements of the main commodities at short intervals in order to verify the price situation in the country. The government has taken a number of steps to help revive stalled projects. A project monitoring group has been set up and functions as an institutional mechanism to address a wide range of issues, including accelerated permit tracking. As of January 1, 2019, more than 3,191 issues raised on the PMG portal had been resolved in relation to 725 projects with a planned investment of Rs 29.88 crores, and 513 inter-ministerial meetings and 247 meetings with secretaries of state had been held to resolve related issues/permissions. In addition, inter-ministerial groups have been formed by the ministries responsible for the maritime transport, textile, energy, telecommunications, renewable energy and MSMEs sectors to examine systemic issues affecting the profitability and repayment capacity of the sectors.

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