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.
Correct Answer
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.
Explanation
Option (B) is correct because S4A was a 2016 RBI initiative designed to manage large stressed accounts by allowing banks to split a company’s debt into sustainable and unsustainable portions, thereby reworking its financial structure. While Option (D) is tempting as it also addresses bad loans, S4A is a specific regulatory tool of the RBI, whereas the Insolvency and Bankruptcy Code (IBC) is a separate legislative framework for time-bound insolvency resolution. The core concept being tested is the various mechanisms and regulatory tools used for managing Non-Performing Assets (NPAs) and corporate debt restructuring in India.
Non-Performing Assets (NPAs)Corporate Debt RestructuringScheme for Sustainable Structuring of Stressed AssetsS4AReserve Bank of IndiaRBINon-Performing AssetsNPACorporate Debt Restructuring