New Delhi, Oct. 5 -- Bank liquidation should be handled by insolvency professionals (IPs) under the supervision of the Reserve Bank of India (RBI) and Deposit Insurance and Credit Guarantee Corporation (DICGC), according to an Insolvency and Bankruptcy Board of India (IBBI) study.

At present, banks are outside the corporate insolvency framework of the Insolvency and Bankruptcy Code (IBC), and failed banks are dealt with under banking laws. RBI, DICGC and the relevant registrar have different roles, while liquidators are appointed under the existing bank liquidation framework.

IBBI-Certified IPs Proposed For Bank Liquidation

The study recommended bringing IBBI-certified IPs into the bank liquidation process to manage the remaining asset...