Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news?

[UPSC Civil Services Exam – 2017 Prelims]

(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.


Answer: (b)        

Explanation:

  • The Reserve Bank of India (RBI) has introduced a scheme called the Scheme for Sustainable Structuring of Stressed Assets (S4A) to address the issue of bad loans among large corporations.
  • The objective of this scheme is to revive and strengthen the financial position of these entities by restructuring their debt and enhancing the lenders’ ability to handle stressed assets.
  • Under the S4A scheme, the RBI’s notification outlines a process of segregating the outstanding debt into sustainable debt and equity/quasi-equity instruments.
  • This scheme aims to determine an appropriate level of sustainable debt for borrowers facing genuine difficulties in order to facilitate their recovery and financial stability.

Consider the following statements:                                                                   The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

Read More »

Consider the following statements:                                                         The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

Read More »
Loading...
Left Menu Icon