The Reserve Bank of India (RBI) earlier announced the Resolution Framework - 2.0. The Resolution Framework 2.0 was aimed at the revival of Covid-19 related stressed Individuals and Small Businesses. A circular was published by the RBI on 5 May 2021 with the title “Resolution Framework – 2.0: Resolution of Covid-19 related stress of Individuals and Small Businesses” dated May 5, 2021.
The above resolution is targeted to the:
Individuals who have availed of loans and advances for business purposes and to whom the lending institutions have aggregate exposure of not more than ₹25 crore as on 31 March 2021.
Small businesses, including those engaged in retail and wholesale trade, other than those classified as MSME as on March 31, 2021, and to whom the lending institutions have aggregate exposure of not more than ₹25 crore as on 31 March 2021.
The Reserve Bank of India (RBI) based on a review, and in consultation with the Central Government decided to enhance the above threshold limit from ₹25 crore to ₹50 crore.
Comments