RBI’s Resolution Framework 2.0

  • August 27, 2021
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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RBI’s Resolution Framework 2.0

Subject – Economy

Context – Few takers seen for debt recast 2.0 as demand recovers: Crisil

Concept –

  • This Framework is to relieve stress faced by most vulnerable categories of borrowers – namely individuals, borrowers and MSMEs.
  • Individuals, borrowers and MSMEs who have not availed any restructuring will be eligible to be considered under Resolution Framework 2.0.
  • For individuals and small businesses who have availed restructuring of loans under Resolution Framework 1.0, lending institutions can now extend residual tenure up to a total period of 2 years.
  • Lending institutions are now permitted to review working capital sanction limits, as a one-time measure.
economy RBI's Resolution Framework 2.0