The RBI takes precedence over Reliance Capital's board of directors

The Reserve Bank of India (RBI) has superseded the board of Reliance Capital Ltd (RCL) in view of the defaults by RCL in meeting the various payment obligations to its creditors and serious governance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 central bank has appointed Nageswar Rao, former Executive Director of Bank of Maharashtra) as the Administrator of the company under Section 45-IE (2) of the RBI Act.

The RBI 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.

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