The Reserve Bank of India (RBI) has issued various instructions aimed at resolution of stressed assets in the economy, including introduction of certain specific schemes at different points of time. In view of the enactment of the Insolvency and Bankruptcy Code, 2016 (IBC), it has been decided to substitute the existing guidelines with a harmonised and simplified generic framework for resolution of stressed assets.
Key highlights of the revised framework are as under:-
· Early identification and reporting of stress
· Implementation of Resolution Plan
· Implementation Conditions for RP
· Timelines for Large Accounts to be Referred under IBC
· Prudential Norms for any restructuring