Scheme for Sustainable Structuring of Stressed Assets
Question
Which of the following statements best describes the term 'Scheme for Sustainable Structuring of Stressed Assets (S4A)', recently seen in the news?
(a) It is a procedure for considering ecological costs of developmental schemes formulated by the Government. (b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties. (c) It is a disinvestment plan of the Government regarding Central Public Sector Undertakings. (d) It is an important provision in "The Insolvency and Bankruptcy Code" recently implemented by the Government.
Options
It is a procedure for considering ecological costs of developmental schemes formulated by the Government.
It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.
It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.
It is an important provision in "The Insolvency and Bankruptcy Code" recently implemented by the Government.
Explanation
S4A is an RBI-announced scheme designed specifically for large corporate borrowers facing genuine financial difficulties due to external factors beyond their control. The scheme provides a structured approach to restructure their debt by reworking the financial obligations through mechanisms like extending the repayment period or reducing interest rates. Option (a) relates to environmental assessment, (c) relates to government disinvestment, and (d) relates to bankruptcy law—none of which describes S4A. The scheme is meant to provide relief to large corporate entities while ensuring sustainable debt resolution, distinct from insolvency proceedings. > S4A = RBI scheme for financial restructuring of stressed large corporates. Answer: (b).
Question details
Year
2017
Paper
GS Paper 1
Question
Q64
Subject
Economy
Sub-topic
RBI Monetary Policy and Banking
Type
Factual single
Difficulty
Medium
Nature
Current-affairs-linked
Source hint
RBI Monetary Policy 2016-2017
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