This is part of Reliance Capital’s efforts to reduce its Rs 18,000 crore debt.
Shadow banks have been under pressure since last year, when IL&FS defaults led to one crisis after another.
The regulator on Wednesday wrote a letter to these companies, stipulating the responsibilities of this senior executive. ET has viewed a copy of the letter.
The RBI specifies Know Your Customer norms to be followed by banks and other entities regulated by it for various customer services, including opening of bank accounts.
IL&FS plans to reclassify the ‘amber’ entities as ‘green’. The NCLAT has given the government and the company time till July 12 to do the reclassification and release payments.
These panels have been asked to review the existing market operations and come up with recommendations aligning them with global best practices.
The lender is expecting a write-back of Rs 4,000 crore from Essar Steel and Bhushan Power and Steel which are undergoing resolution under the Insolvency and Bankruptcy Code.
The government had first invited application for the job in May 2017, but could not find a suitable candidate. Subsequently, another failed attempt was made last year.