24 C ABM Rehabilitation and 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?
The primary objective is to revive and restore the unit to a viable state so that it can repay its dues, preserve employment, and contribute to the economy.
What is the time limit for completion of the Corporate Insolvency Resolution Process (CIRP) under IBC 2016?
180 days, extendable by 90 days with CoC approval.
As per RBI guidelines, when is a borrowal account classified as a Non-Performing Asset (NPA)?
An account is classified as NPA when interest or principal remains overdue for more than 90 days in the case of a term loan, or the account remains out of order for 90 days in case of cash credit or overdraft.
What is a 'Standstill Agreement' in the context of debt restructuring?
A temporary moratorium during which creditors refrain from enforcement actions.
What does the BIFR stand for and what was its role?
BIFR stands for Board for Industrial and Financial Reconstruction; it was set up under the Sick Industrial Companies Act (SICA) 1985 to identify sick industrial companies and facilitate their revival or winding up.
What is the maximum resolution plan approval period under IBC including all extensions?
330 days including litigation periods.
What is the meaning of 'viability study' in the context of rehabilitation?
A viability study is an independent techno-economic appraisal conducted to assess whether a sick unit can be revived profitably, examining its technical feasibility, financial position, market prospects, and managerial competence.
What is the minimum financial creditor threshold to initiate CIRP under IBC 2016?
Default of rupees one crore or more.
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