Reserve Bank of India as part of its Regulatory Policies to deal with Covid-19 related financial stress released the Resolution Framework as a special window for onetime restructuring on August 6, 2020, enabling the lenders to help the corporates in better management of their cashflows.
The framework also envisaged setting up of an Expert Committee led by Mr. K. V. Kamath as the Chairperson to recommendations on the required financial parameters with sector-specific benchmarks to be factored in the resolution plans in respect of eligible borrowers.
The Expert Committee has given its recommendation on September 7, 2020, on the sector-specific benchmarks. We are delighted to present our analysis on the recommendation made by the Expert Committee in light of the August 7, 2020 circular of the Reserve Bank of India.