UPSC CSE Mains Syllabus: GS-3- Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

RBI – Resolution Framework for Restructuring Of Loans

RBI has announced a resolution framework allowing one-time restructuring of loans to corporates under financial stress due to Covid -19 in the specified 26 sectors without classifying them as NPAs.

Why was it needed:

Resolution framework:

Leftout corporates and their challenges:

Will it be successful:

Lessons to learn from the past:

Way forward:

Assess the RBI’s resolution framework for restructuring of loans. Will it be successful in preventing the rise of Non-Performing Assets?