RBI’s debt restructuring scheme

Question 1

meaning of debt restructuring?

Answer 1

Debt restructuring is a process used by companies facing cash flow

problems or financial distress to avoid the risk of default. It can be carried out by reducing the
interest rates on loans or by extending the payment term

in this case : RBI covid mule companies na kahi facilities dyayacha prayatn kartiye under this

Question 2

name of committee set by RBI for recommending ? it’s recommendations?

Answer 2

• K.V. Kamath
  1. Graded approach to restructuring of stressed accounts based on severity of the impact on the borrowers- Banks can classify the accounts into mild, moderate and severe as recommended by the committee. ( mhnje jya companies ni bank kadun paise ghetlet-> tyanchyavar covid chya jhalelya impact varun tyancha particular category madhe classification karne)
  2. Five financial parameters
  3. 26 sectors are identified

Question 3

who is eligible?

Answer 3

• loans above ₹1500 crore
• for borrowers who have been impacted on account of Covid.
• Only those borrowers which were classified as standard and with arrears less than 30 days as at March 1, 2020 are eligible