UPSC Previous Year Question | Prelims GS | 2017

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

  1. It is a procedure for considering ecological costs of developmental schemes formulated by the Government.
  2. It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.
  3. It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.
  4. It is an important provision in 'The Insolvency and Bankruptcy Code' recently implemented by the Government.

Answer

Correct Answer

It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.

Explanation

S4A is an RBI framework introduced to help resolve stressed loans of large corporates by restructuring their debt into sustainable and unsustainable portions, applicable to companies facing genuine financial difficulties.

Topics: banking sector reforms and npa resolution, economy, s4a purpose, scheme for sustainable structuring of stressed assets