The Covid19 and the resultant economic crisis strain have changed the way businesses are being run and have also necessitated a proactive role by the regulators. The latest Reserve Bank of India circular on the Resolution Framework for Covid-19 related Stress is a great one-time restructuring tool enabling the lenders to help the corporates in better management of their cash flows. Further, the banks have also provided a lot of schemes that support additional working capital, viability gap funding, and also fresh loans to support the unprecedented crisis.
Enclosing herewith our Analysis on ‘Resolution Framework for COVID-19-related Stress’ by Reserve Bank of India, which attempts to provide key insights on some of these aspects.