RBI modifies guidelines on schemes related to stressed assets
The Reserve Bank of India (RBI), issued various notifications in the past, aimed at strengthening the ability of lenders in India to deal with stressed assets. Some of these include notifications which provide guidelines for a scheme of:
These schemes provided an avenue to rework the financial structure of entities facing genuine difficulties and to require coordinated deep financial restructuring.
On 10 November 2016, RBI through its notifications DBR.No.BP.BC.33/ 21.04.132/2016-17 and DBR.No.BP.BC.34/21.04.132/2016-17, made certain revisions to the guidelines referred above.
These changes are aimed at achieving the following:
This issue of First Notes provides a synopsis of the significant modifications made by RBI to the schemes related to stressed assets.
To access the text of the RBI circular on revisions made in schemes for stressed assets, please click here.
To access the text of the RBI circular on revisions made in scheme for sustainable structuring of stressed assets, please click here.
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