Which of the following statements best describes the term Scheme for Sustainable Structuring of Stre

Question

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

Accepted Answer

The Scheme for Sustainable Structuring of Stressed Assets (S4A) by the Reserve Bank of India (RBI) is designed to address the issue of stressed assets in the banking sector. It involves determining the sustainable debt level for a stressed borrower and restructuring the outstanding debt into sustainable debt and equity/quasi-equity instruments. This restructuring is expected to provide an upside to the lenders when the borrower successfully turns around.