Financial Parameters For The Covid-19 Resolution Framework || One Size ‘Does Not' Fit All

On August 6, 2020, the Reserve Bank of India (RBI) took a significant step towards scaling the exponential onset of financial stress induced by the COVID-19 pandemic and put forth a series of regulatory measures through its Circular bearing no. RBI/2020-21/16 DOR. No. BP. BC/3/21.04.048/2020-21 titled 'Resolution Framework for COVID-19 related Stress'. The 'August 6th Circular', as is being colloquially referred since, laid down certain directives that are aimed at providing an interim regulatory forbearance to credit-exposures facing financial stress singularly & directly attributable to the pandemic; whilst, mandating requisite credit discipline amongst the Banks & Financial Institutions (FIs) so as to ward-off the 'delinquent' accounts from piggy-backing the Resolution Framework.