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ARTICLE · 25 AUGUST 2020

RBI Opens Window For One-Time Debt Restructuring

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The resolution of stressed assets has always been a matter of grave concern for India's financial sector.

IndiaInsolvency/Bankruptcy/Re-Structuring
Dinesh Gupta
Dinesh Gupta
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The resolution of stressed assets has always been a matter of grave concern for India's financial sector. The Reserve Bank of India (RBI) had issued several instructions aimed at resolution of stressed assets in the Indian economy and also introduced several specific schemes at different times.

With the enactment of Insolvency and Bankruptcy Code, 2016, the RBI issued a harmonised and simplified generic framework for resolution of stressed assets namely, the Reserve Bank of India (Prudential Framework for Resolution of Stressed Assets) Directions 20191 (Prudential Framework). The Prudential Framework provides for early recognition, reporting and time bound resolution of stressed assets.

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