• 9964432222
  • Mail Us
  • Appointment
  • Locate Us
  • Chat Now
  • Courses
  • Login
  • Register
Manifest IAS
JournalsOfIndia
Advertisement
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
JournalsOfIndia
No Result
View All Result
Home Economy

Stressed Assets

July 4, 2019
in Economy
Reading Time: 2 mins read
0
49
VIEWS
Share on WhatsAppShare on TelegramShare on Facebook
image_pdfMake PDF

RBI’s Prudential Framework for Resolution of Stressed Assets

Recently the Reserve Bank of India has released a prudential framework for resolution of stressed assets by banks.

Background 

 The prudential framework revises an earlier circular of RBI (issued in February 2018) on the resolution of stressed assets. The 2018 circular was struck down by the Supreme Court in April 2019. It held that the circular issued by RBI was outside the scope of the power given to it under Article 35AA of the Banking Regulation (Amendment) Act, 2017

Key highlights about Prudential Framework

  • The prudential framework states that lenders should recognize stress in loan accounts immediately on default, by classifying such assets as special mention accounts (SMA) in the following categories: 

Special Mention Account categories 

SMA sub-categoriesThe basis for classification (amount overdue between) 
SMA-0  1-30 days 
SMA-1 31-60 days
SMA-2  61-90 days 

Source: RBI

  • The revised circular: The revised circular also allows lenders to categorize revolving credit facilities like cash credit into two SMA categories. 
  • The prudential framework provides for a review period of 30 days from the day a borrower is reported to be in default. During this period, lenders may decide on a Resolution Plan or may choose to initiate legal proceedings for insolvency or recovery of the debt. ( Resolution Plan refers to a plan put forth to revive an entity from insolvency)
  • Further, all lenders should enter into an inter-creditor agreement (ICA) during this Review Period in all cases where a Resolution Plan is to be implemented. Any decision agreed by the ICA by:
  1. Lenders representing 75% of the total outstanding credit, and 
  2. 60% of total lenders, shall be binding upon all lenders. 
  • The Resolution Plan shall be implemented within 180 days from the end of the Review Period

 

image_pdfMake PDF
Tags: Prelims

Related Posts

Gold hallmarking

Gold hallmarking

May 4, 2022
MSME Sustainable (ZED) Certification Scheme

MSME Sustainable (ZED) Certification Scheme

May 3, 2022
India Semiconductor Mission

India Semiconductor Mission

May 3, 2022
Atal New India Challenge 2.0 (ANIC 2.0)

Atal New India Challenge 2.0 (ANIC 2.0)

April 30, 2022
Labour Force Participation Rate (LFPR)

Labour Force Participation Rate (LFPR)

April 29, 2022
All-India Household Consumer Expenditure Survey

All-India Household Consumer Expenditure Survey

April 26, 2022
Fincluvation

Fincluvation

April 23, 2022
Global Ayush Investment and Innovation Summit 2022

Global Ayush Investment and Innovation Summit 2022

April 22, 2022
Special Purpose Acquisition Companies (SPACs)

Special Purpose Acquisition Companies (SPACs)

April 22, 2022
World Bank paper on ‘Poverty’

World Bank paper on ‘Poverty’

April 21, 2022
Please login to join discussion

Our Offline Classroom Student

PRELIMS 2021 POLITY QUESTIONS ANALYSED

https://youtu.be/5q8hBcRGhAs

PRELIMS 2021 HISTORY QUESTIONS ANALYSED

https://youtu.be/v0SIZ7SUybg

CONGRATULATIONS TO 2020 TOPPERS !!!

Rank 25 Vaibhav Rawat 

Rank 218 Kankanala Rahul Reddy
Rank 385 Sagar A Wadi
Rank 504 Malashree MV
Rank 573 Shridevi B V
Rank 707 Mamatha G

COURSES OFFERED

PRELIMS SURESHOTS

May 2022
MTWTFSS
 1
2345678
9101112131415
16171819202122
23242526272829
3031 
« Apr    

Browse by Category

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tags

AIR BBC Business Standard CNN Deccan Herald DownToEarth Down to Earth DTE Economic Times ET GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express India today Indiatoday Kurukshetra LiveMint Mains News News Paper Newspaper PIB PIB & The Hindu pre Prelims PRS India RSTV Science Reporter Survey The Hindu The Hindustan Times The India Express The Indian Express The New Indian Express Times of India TOI TOPPERS UNDP website Wikipedia Yojana
JournalsOfIndia

Our vision is to orient the readers to grasp the facts objectively and analyse critically. In the rush of reaching first to the readers, the websites miss the balanced opinion, which is the need of the hour. We aim to reach the readers with more crispness, preciseness and relevance. We bring the articles in UPSC way for the civil services aspirants and the Wisest Way for general readers.

Categories

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tag

AIR BBC Business Standard CNN Deccan Herald DownToEarth Down to Earth DTE Economic Times ET GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express India today Indiatoday Kurukshetra LiveMint Mains News News Paper Newspaper PIB PIB & The Hindu pre Prelims PRS India RSTV Science Reporter Survey The Hindu The Hindustan Times The India Express The Indian Express The New Indian Express Times of India TOI TOPPERS UNDP website Wikipedia Yojana

Newsletter

The most important UPSC news and events of the day.

Get Journals daily newsletter on your inbox.

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

  • Login
  • Sign Up
  • Home
  • SNIPPETS
  • ARTICLES
  • BROWSE
  • DOWNLOADS
No Result
View All Result

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In