The agreement provides for the completion of the ICA by 22 public sector banks, including India Post Payments Bank, 19 private banks and 32 foreign banks. Other signatories to the agreement will be 12 leading financial institutions, such as LIC, Power Finance Corporation and Rural Electrification Corporation, etc. The agreement, as proposed by a committee led by the President of the National Bank of Punjab, Sunil Mehta, is a “big step forward” in solving the problem of stressed assets and was developed under the Insolvency and Insolvency Act (IBC), Goyal Reporters said on the sidelines of a conference organized by the Confederation of All India Traders (CAIT). It should be noted that the agreement or pact between creditors is denounced in certain situations, such as the direct intervention of the Reserve Bank of India. In accordance with the Reserve Bank of India`s (RBI) Prudential Framework for Resolution of Stressed Assets, the Association of Indian Banks (IBA) has entered into an agreement between creditors (ICA) that provides details on lender meetings, voting issues, payments to dissenting lenders and additional financing. The Inter-creditor agreement or ICA, which is a direct result of Sashakt`s resolution plan or the government`s report on bad bank prepared by the Sunil Mehta Committee, will work as follows: derogatory lenders may exercise such a right of sale for all the facilities of other lenders concerned, according to the agreement. India`s banks and financial institutions (FIs) reached an inter-creditor agreement (ICA) on Monday to speed up the resolution of non-performing assets (NPAs) or non-performing loans and ensure a smooth flow of credit, Acting Finance Minister Piyush Goyal said. In this regard, the lenders jointly designate, in the agreement, a leading lender acting on behalf of the group as a whole. The lead lender will then be required to present the non-performing asset resolution plan (PNN) to the group and, if it gets the green light from two-thirds of the lenders, the proposal to settle the predetermined account will be considered. On Monday, CNBC TV18 canceled the news that SBI and other major banks in the country have signed an agreement between creditors. What`s the point? Here we will discuss in detail the new agreement of banks in India: Business Standard report says that 24 lenders of SBI and GNP signed Monday an inter-creditor agreement to accelerate the resolution of stressed assets in the range of Rs 500 million-Rs 5 billion in syndicated loans.