STRESS RESOLUTION FRAMEWORK 2.0
- May 6, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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STRESS RESOLUTION FRAMEWORK 2.0
Subject : Economy
Context : RBI has announced following set of measures to relieve stress faced by most vulnerable categories of borrowers – namely individuals, borrowers and MSMEs.
Concept :
- Individuals, borrowers and MSMEs with aggregate exposure up to Rs. 25 crore, who have not availed restructuring under any previous frameworks, who were classified as standard on 31 March, 2021, will be eligible to be considered under Resolution Framework 2.0.
- Restructuring under new framework can be invoked till September 30, 2021 and will have to be implemented within 90 days after invocation.
- For individuals and small businesses who have availed restructuring of loans under Resolution Framework 1.0, where moratorium of less than 2 years was permitted, lending institutions can now increase the period and/or extend residual tenure up to a total period of 2 years.
- In respect of small businesses and MSMEs restructured earlier, lending institutions are now permitted to review working capital sanction limits, as a one-time measure.