Reserve Bank allowed a one-time restructuring of existing debt up to Rs.....crore for the companies which have defaulted on payment but the loans given to them have continued to be classified as standard assets.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Reserve Bank allowed a one-time restructuring of existing debt up to Rs____crore for the companies which have defaulted on payment but the loans given to them have continued to be classified as standard assets.

A	Rs 50 crore
B	Rs 25 crore
C	Rs 10 crore
D	Rs 40 crore

Explanation:

Detailed explanation-1: -Lending banks can recognize these loan accounts as standard and need not book them as Non-performing assets (NPAs). Now, with the new One-time loan restructuring scheme, a lender can restructure debt without replacing owners of the affected company, which was not permitted as per the previous restructuring guidelines.

Detailed explanation-2: -6.2. 3 Normally, restructuring cannot take place unless alteration / changes in the original loan agreement are made with the formal consent / application of the debtor. However, the process of restructuring can be initiated by the bank in deserving cases subject to customer agreeing to the terms and conditions. 6.2.

Detailed explanation-3: -This one time settlement scheme is an opportunity for the non-wilful defaulters having an NPA (non-performing account) balance from Rs. 15.00 lacs to Rs. 10.00 Crores as on 30.06. 2022, to settle their bad accounts.

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