Financial Parameters for the COVID-19 Resolution Framework | One Size ‘Does Not’ Fit All
Quite quick on the heels of the Reserve Bank of India’s (RBI’s) Circular on ‘Resolution Framework for COVID-19 related Stress’ dated August 6, 2020 and pursuant to the KV Kamath Committee recommendations in its ‘Report of the Expert Committee on Resolution Framework for COVID-19 related Stress’ dated September 4, 2020, the RBI has, on September 7, 2020, come out with the much-awaited Circular on ‘Resolution Framework for COVID-19 related Stress – Financial Parameters’. The recent RBI Circular, among other things, prescribes the key Financial Parameters and corresponding Sectoral Benchmarks which are required to be factored in by the Banks & FIs whilst formulating and implementing a Resolution Plan under the August 6th Circular.
Read the note which attempts to provide a brief summary of the KV Kamath Committee recommendations and the key facets of the RBI Circular which followed thereafter.
Read the full note here.