Answer-Which framework is used for resolution of stressed assets?

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Explanation The primary framework currently used in India for the resolution of stressed assets, particularly for companies and corporate debtors, is the Insolvency and Bankruptcy Code IBC, 2016. While the RBI provides a Prudential Framework for Resolution of Stressed Assets 2019 that offers guidelines for lenders, the IBC acts as the overarching statutory legislation to resolve insolvency in a time-bound manner, ensuring the maximisation of asset value.  Basel norms are concerned with bank capital adequacy risk management, not the direct resolution of non-performing loans. FEMA deals with foreign exchange management. FRBM deals with fiscal consolidation. SARFAESI allows for the speedy recovery of secured assets, but is less effective than IBC for complex corporate cases involving multiple creditors and the need for revivalrehabilitation

Which framework is used for resolution of stressed assets?

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