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What is the resolution plan cleared by RBI for Reliance Capital

The Reserve Bank of India (RBI) has cleared a resolution plan for debt-ridden Reliance Capital.
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The Reserve Bank of India (RBI) has cleared a resolution plan for debt-ridden Reliance Capital. Here are the key points of the resolution plan:
  • Reliance Capital will be split into two separate entities – a retail lending entity and a wholesale lending entity.
  • The retail lending entity will focus on serving small and medium-sized businesses and retail customers, while the wholesale lending entity will cater to large corporates and institutional clients.
  • Both entities will be independent of each other and operate under separate management teams.
  • This resolution plan aims to streamline the operations of Reliance Capital and improve its financial health by segregating the retail and wholesale lending businesses.
  • The RBI has also directed Reliance Capital to reduce its exposure to risky assets and improve its capital adequacy.
  • The resolution plan is expected to help Reliance Capital address its liquidity concerns and pave the way for its long-term sustainability.
It is important to note that these points are based on available information, and for a comprehensive understanding of the resolution plan, it is advisable to refer to official sources or statements from the RBI or Reliance Capital.
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