Mumbai: 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, Reserve Bank of India 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, the Reserve Bank of India 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.