RBI

Resolution Framework 2.0 : Resolution of Covid-19 related stress of Individuals, Small Businesses and MSMEs

The Reserve Bank of India (RBI) on Friday decided to enhance the exposure threshold to Rs 50 crores under Resolution Framework 2.0. The Resolution Framework 2.0 was announced by the RBI on May 5 to help small borrowers tide over the impact of the second wave of the Covid-19 pandemic and lockdowns.

In a bid to expand the coverage of the Resolution Framework 2.0, the Reserve Bank of India on Friday announced a doubling of the maximum aggregate exposure to Rs 50 crore.

RBI Governor Shaktikanta Das said in monetary policy Statement,

“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 ₹25 crores to ₹50 crores for MSMEs, non-MSME small businesses and loans to individuals for business purposes,”

“The above categories of borrowers to whom the lending institutions have aggregate exposure of not more than ₹ 50 crores as on March 31, 2021, and which have not been restructured earlier under any of the specified restructuring frameworks, shall be eligible to be considered for resolution under Resolution Framework 2.0,” Mr. Das added.

All other conditions shall remain the same.

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