📝 One-liners · 66 cards
Rehabilitation and Recovery
What is the primary objective of rehabilitation of a sick industrial unit?
The primary objective is to revive a viable but distressed unit by providing financial restructuring, managerial support, and operational improvements so it can resume normal functioning and repay its debts.
What is the minimum number of days a loan account must remain NPA before rehabilitation is considered?
Generally 90 days past due triggers NPA classification.
Under RBI guidelines, what is the definition of a 'sick' borrower account eligible for rehabilitation?
A borrower account is considered sick when it has remained a Non-Performing Asset (NPA) for at least six months and the unit has potential for revival if provided with timely support and restructuring.
What is the purpose of a 'moratorium period' granted during rehabilitation of a sick unit?
Temporary suspension of repayment obligations to allow recovery.
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