New Delhi: As the pandemic has led to severe economic stress across sectors, the Reserve Bank of India (RBI) earlier this month announced to provide a resolution framework to enable the lenders to implement a resolution plan, in respect of eligible corporate borrowers without change in ownership while continuing the account status as standard, subject to specified conditions.
“The review will focus on enabling businesses and households to avail of the revival framework on the basis of viability, necessary steps like finalising bank policies and identifying borrowers, and discussing issues that require addressing for smooth and speedy implementation,” a Finance Ministry statement said on Sunday.
Announcing the move post the Monetary Policy Committee’s (MPC) meeting, the RBI Governor said that the move has been announced in a bid to provide relief to stressed companies which have not been able to repay loans due to cash flow issues amid the pandemic.
