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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Resolution Framework - 2.0: Resolution of Covid-19 related stress of Individuals and Small Businesses-Revision in the threshold for aggregate exposure

04-Jun-2021 | RBI/2021-2022/46 DOR.STR.REC.20/21.04.048/2021-22

RBI issued a circular Resolution Framework 2.0: Resolution of Covid-19 related stress of Individuals and Small Businesses vide circular no. DOR.STR.REC.11/21.04.048/2021-22 on May 5, 2021.

Clause 5 of the above circular specifies the eligible borrowers who may be considered for resolution under the framework -
(b) Individuals who have availed of loans and advances for business purposes and to whom the lending institutions have aggregate exposure of not more than Rs. 25 crore as on March 31, 2021.
(c) Small businesses, including those engaged in retail and wholesale trade, other than those classified as MSME as on March 31, 2021, and to whom the lending institutions have aggregate exposure of not more than Rs. 25 crore as on March 31, 2021.

It has now been decided to enhance the above limits from Rs. 25 crore to Rs. 50 crore.

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