“Similar to Resolution Framework 1.0, the new regulations give the power to lenders to accept or reject restructuring applications. The decision will be based on the board-approved policy of each institution," said Adhil Shetty, CEO, Bankbazaar.com. Earlier, after the RBI published the circular on 6 August, lenders didn’t have a restructuring policy in place for up to two-three months. In the earlier restructuring exercise, borrowers didn’t have clarity on why lenders rejected their applications. If the lenders make the board-approved policy available on the websites, borrowers could understand if they fit the lenders’ criteria or not.

Source: Mint May 25, 2021 16:30 UTC