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What is S4A scheme of RBI?
Scheme for Sustainable Structuring of Stressed Assets also known as S4A Scheme was launched on 13th June 2016 by the Reserve Bank of India as an initiative to address and resolve the debt issues of the corporate sector along with strengthening the ability of the lender to deal with stressed assets.
What is SDR scheme of RBI?
Strategic Debt Restructuring Scheme or the SDR from the RBI, enables banks who have issued loans to corporates, to convert a part of the total outstanding loan amount and interest into major shareholding equity in the company.
What are the powers of RBI for resolution of stressed assets?
The approach of RBI towards resolution of stressed assets outside IBC has been to incentivise timely initiation of resolution efforts; proper recognition of increased credit risk to the lenders on account of the concessions granted in the form of debt recast; and the borrowers are required to demonstrate that the …
What is 5 25 restructuring scheme?
The scheme allowed the Bankers to fix a longer repayment period for loans to infrastructure and core industries say 25 years, based on the economic life or concession Period of the project, with periodic review, say every 5 years.
Which was the first company on which RBI imposed S4A scheme first in India?
HCC was the first company to receive RBI nod for debt reconstruction under the S4A scheme.
What is SRA in banking sector?
A Sale and Repurchase Agreement (SRA) is an open market operation, implemented by the Central Bank of Canada, that is designed to affect overnight interest rates and modify the supply of money.
How many SDR are in India?
The total SDR holdings of India now stands at SDR 13.66 billion (equivalent to around USD 19.41 billion at the latest exchange rate) as on August 23, 2021.
Who holds SDR in India?
Presently, India holds 2.75% of SDR quota, and 2.63% of votes in the IMF. India’s foreign exchange reserves also incorporate SDR other than gold reserves, foreign currency assets and Reserve Tranche in the IMF.
What is the purpose of SDR?
The SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries. The SDR is not a currency. It is a potential claim on the freely usable currencies of IMF members. As such, SDRs can provide a country with liquidity.
What is difference between stressed assets and NPA?
Meaning of Stressed Assets During the period of 90 days before becoming non-performing assets, these are called ‘stressed assets. ‘ There has been a major rise in the percentage of stressed assets or non-performing assets (NPAs) in the banking industry recently.