RBI announces Resolution Framework 2.0 for Covid related stressed assets; MSMEs, to be benefited
The COVID-19 pandemic has reared its head in India in recent weeks, and the most vulnerable borrowers in this pandemic are individual borrowers, small businesses, and MSMEs. As a result, RBI governor Shaktikanta Das announced Resolution Framework 2.0 for COVID-related stressed assets held by individuals, small businesses, and MSMEs. As per the resolution borrowers with aggregate exposure of up to Rs 25 crore who have not benefited from restructuring under any of the previous restructuring frameworks (including Resolution Framework 1.0) and were categorised as ‘Standard' as of March 31, 2021, will be eligible to be considered under Resolution Framework 2.0.
Restructuring under the proposed framework may be requested up until September 30, 2021, and must be completed within 90 days of the request. For the restructuring plan to be implemented, the borrower must be registered in the Udyam Registration portal before the date of implementation.
