24 C ABM Rehabilitation Recovery
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Bank Management — CAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the primary objective of rehabilitation of a sick industrial unit under Indian banking norms?
The primary objective is to revive and restore the unit to a viable state so that it can repay its dues to banks and resume normal operations, thereby preserving employment and economic value.
What is 'Scheme for Sustainable Structuring of Stressed Assets' (S4A) introduced by RBI?
RBI scheme to restructure debt of large stressed projects into sustainable and unsustainable portions.
Which RBI circular governs the framework for resolution of stressed assets in Indian banks?
The RBI Prudential Framework for Resolution of Stressed Assets (June 2019) governs the resolution framework, replacing the earlier schemes like S4A, SDR, and 5/25 refinancing.
What is 'Joint Lenders Forum' (JLF) in the context of stressed asset resolution?
A forum of all banks with exposure to a stressed borrower to collectively resolve the account.
What is the definition of a Non-Performing Asset (NPA) as per RBI guidelines?
An NPA is a loan or advance where interest or principal payment has remained overdue for a period of more than 90 days in case of term loans, or the account remains out of order for cash credit and overdraft facilities.
What is the meaning of 'lead bank' in a consortium lending arrangement?
The bank with largest exposure that coordinates credit monitoring and recovery among lenders.
What is meant by 'restructuring' of a loan account in bank credit management?
Restructuring refers to a change in the original terms of a loan — such as rescheduling of repayment, reduction in interest rate, or conversion of interest to equity — to help a borrower overcome temporary financial stress.
What is 'Corporate Debt Restructuring' (CDR) mechanism in Indian banking?
A voluntary, non-statutory mechanism for restructuring debt of viable but stressed corporates.
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