Aspirin For Stress Relief: RBI Notifies Revised Framework For Stressed Assets

• Revised framework for resolution of stressed assets notified
• Norms on early identification, reporting, and implementation of resolution plans strengthened
• Existing resolution methods including CDR, SDR, and S4A, withdrawn with immediate effect
• Repeat defaulters under RBI schemes and above INR 20 Billion accounts compulsorily mandated to be referred under the IBC

INTRODUCTION

The Reserve Bank of India ("RBI") has in the past, issued various instructions aimed at resolution of stressed assets in the economy, while also introducing certain specific schemes for resolution at different points of time. In view of the enactment of the Insolvency and Bankruptcy Code, 2016 ("IBC"), the RBI has substituted these existing instructions and schemes with a harmonised and simplified generic framework for resolution of stressed assets ("Revised Framework").