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.