Corrective
Action Plan also includes resolution of Stressed Assets by way of Flexible
Structuring of Project Loans, Change in Ownership under Strategic Debt Restructuring,
Scheme for Sustainable Structuring of Stressed Assets (S4A), etc.
·
It has now been decided that,
henceforth, the decisions agreed upon by a minimum of 60 % of creditors by
value and 50 % by number in the JLF would be considered as the basis for
deciding the CAP.
·
This will be binding on all lenders,
subject to the exit option available in the Framework.
·
Lenders shall ensure that decisions
taken at the JLF are implemented by the lenders within the timelines.
It is
further clarified that
(i) the
stand of the banks shall be unambiguous and unconditional;
(ii) any
bank which does not support the majority decision may exit subject to
substitution within the stipulated time line, failing which it shall abide the
decision of the JLF;
(iii)
the bank shall implement the JLF
decision without any additional conditions;
(iv)Boards
shall empower their executives to implement the JLF decision.
Non-adherence
to these instructions and timelines shall attract monetary penalties on the
concerned banks.
Based on RBI circular dated 5/5/2017. For any further
clarification please refer www.rbi.org.in …………….
Poppy
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