once a borrower is reported to be in default by any of the lenders, lenders shall undertake a prima facie review of the borrower account within how many days from such default

Solution

All lenders must put in place Board-approved policies for resolution of stressed assets, including the timelines for resolution. The lenders shall initiate the process of implementing a resolution plan (RP) even before a default. Once a borrower is reported to be in default by any of the lenders, lenders shall undertake review of the borrower account within thirty days from such default (“Review Period”). During this Review Period of thirty days, lenders may decide on the resolution strategy, including the nature of the RP, the approach for implementation of the RP, etc. The lenders may also choose to initiate legal proceedings for insolvency or recovery In cases where RP is to be implemented, all lenders shall enter into an inter-creditor agreement (ICA), during the above-said Review Period, to provide for ground rules for finalisation and implementation of the RP in respect of borrowers with credit facilities from more than one lender. The ICA shall provide that any decision agreed by lenders representing 75 per cent by value of total outstanding credit facilities (fund based as well non-fund based) and 60 per cent of lenders by number shall be binding upon all the lenders.