gs1medium
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.
▶ Answer & Explanation
Correct answer: B. It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.
The Scheme for Sustainable Structuring of Stressed Assets (S4A) was introduced by the Reserve Bank of India (RBI) to provide a framework for banks to resolve the financial difficulties of large companies facing stress. It allows for the restructuring of debt by splitting it into sustainable and unsustainable portions, enabling lenders to manage non-performing assets more effectively.
Source: UPSC gs1 2017