During the times of any economic distress, the Reserve Bank of India generally issues a principle-based resolution framework to address the crisis situation. Accordingly, the banks implement resolution plan implemented as per the guidelines of “Prudential Framework”. This resolution plan allows granting a few concessions on account of the financial crisis of a borrower. Often these concessions result in the depreciation of the loan asset classification i.e. an increase in NPA.<\/p>\n\n\n\n
As we know that the ongoing global catastrophe of COVID-19 has severely
impacted the economy, particularly the banking sector. The economic depression on account of the COVID-19 pandemic has led to great financial stress for the borrowers all over India.<\/p>\n\n\n\n
With a view to revive the banking sector and mitigate the adverse impact of
COVID-19 on the borrowers, RBI has decided to facilitate a window under the Prudential Framework as to allow the banks to implement a Resolution Framework for the borrower entities.<\/p>\n","protected":false},"excerpt":{"rendered":"
During the times of any economic distress, the Reserve Bank of India generally issues a principle-based resolution framework to address the crisis situation. Accordingly, the banks implement resolution plan implemented as per the guidelines of “Prudential Framework”. This resolution plan allows granting a few concessions on account of the financial crisis of a borrower. Often […]<\/p>\n","protected":false},"author":4,"featured_media":39754,"parent":15144,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"download-newsletter.php","meta":[],"acf":[],"yoast_head":"\n