The RBI on Friday expanded the coverage of Resolution Framework 2.0 by doubling the maximum aggregate exposure threshold to Rs 50 crore for MSMEs, non-MSME small businesses and individuals for business purposes.
On May 2, RBI had announced Resolution Framework 2.0 for debt restructuring of stressed individuals, small businesses and MSMEs having aggregate exposure of up to Rs 25 crore.
“With a view to enabling a larger set of borrowers to avail of the benefits under Resolution Framework 2.0, it has been decided to expand the coverage of borrowers under the scheme by enhancing the maximum aggregate exposure threshold from Rs 25 crore to Rs 50 crore for MSMEs, non-MSME small businesses and loans to individuals for business purpose,” RBI Governor Shaktikanta Das said while announcing the monetary policy.
Under the current resolution framework, restructuring should be invoked up to September 30, 2021 and shall have to be implemented within 90 days after invocation, RBI had said in May.
Last week, Indian Banks Association (IBA) had said state-owned banks have formulated a templated approach for restructuring of loans under Resolution Framework 2.0.
The Reserve Bank of India on Friday left the repo rate unchanged at 4 percent.
The six-member Monetary Policy Committee also decided unanimously to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward.