The Reserve Bank of India (RBI) has rejected a proposal to reappoint Rajkumar Bansal as MD and CEO of Edelweiss Asset Reconstruction Company (ARC), the company said in a stock exchange notice.

R K Bansal has served two three-year terms as head of Edelweiss ARC. The company’s board approached RBI for his extension six months back. His tenure ended on 31 May.

Less than a fortnight back, the RBI had imposed business curbs on two Edelweiss group entities, including Edelweiss ARC, for regulatory breaches and allegations of evergreening of loans. While Edelweiss ARC was barred from acquiring new stressed loans on its books, ECL Finance, was stopped from undertaking new businesses.

"The action is based on material concerns observed during the course of supervisory examinations, essentially arising out of the conduct of the group entities acting in concert, by entering into a series of structured transactions for evergreening stressed exposures of ECL, using the platform of EARCL and connected AIFs, thereby circumventing applicable regulations," the RBI had earlier stated while taking action against the two Edelweiss entities.

Bansal has over three decades of banking experience and had retired as an executive director from IDBI Bank before taking up the position at Edelweiss ARC.