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C Rehabilitation Recovery
What is the primary objective of rehabilitation of a sick unit under Indian banking norms?
The primary objective is to restore the unit to viability so it can repay its dues to lenders and resume normal operations, rather than proceeding to liquidation.
What is 'financial restructuring' in the context of rehabilitation of sick units?
Rearranging debt/equity mix to restore borrower's financial health.
Which RBI guidelines govern the rehabilitation and restructuring of sick MSMEs?
The RBI's guidelines on 'Framework for Revival and Rehabilitation of MSMEs' govern the process, requiring banks to identify incipient stress early and initiate corrective action.
What is an 'out-of-court' restructuring mechanism in Indian banking?
Voluntary creditor-led resolution without formal legal proceedings.
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