RBI Releases Guidelines For Debt Resolution For Stressed Sectors

Apart from these, banks can also consider other financial parameters. Lenders have been directed to consider the pre-COVID-19 financial performance of the company for considering the resolution plan.

These sectors include aviation, hospitality, real estate which are some of the most stressed sectors in the economy due to the impact of the pandemic.

The RBI said it had broadly accepted the recommendations of the expert committee.

The RBI had formed a committee under K.V. Kamath, the former head of the New Development Bank, set up by the BRICS to come up with guidelines for the resolution framework.