The Reserve Bank of India (RBI) on Monday superseded the board of directors of Reliance Capital Ltd (RCL) owing to governance issues and payment defaults in meeting multiple payment obligations. The apex bank announced the move in a circular.

Share Market Live

NSE

The RBI has appointed Nageswar Rao Y, executive director, Bank of Maharashtra, as the administrator.

Also Read:

RBI announces new norms for private banks; corporate ownership not allowed just yet

"In exercise of the powers conferred under Section 45-IE (1) of the Reserve Bank of India Act, 1934, the Reserve Bank has today superseded the Board of Directors of M/s Reliance Capital Ltd (RCL) in view of the defaults by RCL in meeting the various payment obligations to its creditors and serious governance concerns which the Board has not been able to address effectively," the circular stated.

The bank will shortly initiate the process of resolution of the company under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019, the circular said.

Also, the RBI will also apply to the NCLT, Mumbai for appointing the Administrator as the Insolvency Resolution Professional.

Also Read: RBI recommendations on digital lending positive for Paytm, company says

(Edited by : Jomy Jos Pullokaran)

First Published:Nov 29, 2021 4:28 PM IST