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India to set up panel for approving banks' bad debt settlement plans

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India to set up panel for approving banks' bad debt settlement plans

The Indian government is considering creating a committee toapprove the bad loan settlements of public sector banks, The Economic Times reported April 11.

The proposed three-member committee will be composed of anex-Supreme Court judge, a retired official of the Comptroller and AuditorGeneral and a previous chief vigilance commissioner. Banks could approach thecommittee with their settlement proposals and execute them without fearingaction from investigating agencies.

The proposal comes after banks expressed concerns overone-time settlements and feared that investigating agencies might come afterthem.