The Reserve Bank of India (RBI) has, to the much-needed respite of the Banks, FIs, the Industry & Individual, delivered on its commitment to extend its support to the Economy which is ailing and rendered fragile by the financial stress caused on account of the COVID-19 pandemic. The RBI has, vide its Circular no. DOR. No. BP. BC/3/21.04.048/2020-21 dated August 6, 2020 titled “Resolution Framework for COVID-19-related Stress”, granted an interim regulatory forbearance to the Credit Exposures which are facing financial stress on account of COVID-19 induced liquidity-deficit & disproportionate debt obligations running on their books. The Circular has been widely welcomed across Industry and is being considered as a timely step in the right direction.
Read the primer authored by our Partner, Anand Srivastava and Associate Partner, Aditya Bhardwaj which summarizes key facets of the RBI Circular (in respect of Credit Exposures to Corporates), structured as a ‘one-time special window’ provided under the over-arching ‘Prudential Framework for Stressed Assets’ dated June 7, 2019.
Read more here.