FAQs on resolution framework for COVID-19 related stress
October 14, 2020
The RBI has issued a list of FAQs clarifying various aspects of the Resolution Framework for Covid-19 related stress.
Amongst others, it has clarified that while the reference date for outstanding amount of debt that may be considered for resolution is 1 March 2020, that is, borrowers should be classified as standard, but not in default for more than 30 days with any lending institution as on 1 March 2020, the actual debt that may be considered for resolution will be the outstanding as on the date of invocation. It is also clarified that the prescribed thresholds for the financial parameters may be applied at the project level only in respect of borrowers belonging to real estate sector and having both residential and commercial real estate business.
To refer to the FAQs, click here