ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 19 April. Click Here for more information.
ForumIAS Answer Writing Focus Group (AWFG) for Mains 2024 commencing from 24th June 2024. The Entrance Test for the program will be held on 28th April 2024 at 9 AM. To know more about the program visit: https://forumias.com/blog/awfg2024
- RBI’s joint lenders’ forum (JLF) guidelines came into effect in 2014 after the central bank put a new framework in place to tackle stressed assets.
- JLFs were intended to recognize stressed assets early and come up with a corrective action plan (CAP) within 45 days.
- Upon agreement by a minimum of 75% of lenders by value and 60% of the lenders by number restructuring of the account may be carried out under the Corporate Debt Restructuring (CDR) Mechanism.
- RBI has asked banks to set up an empowered group (JLF-EG) which will be tasked to approve the restructuring package.
- Banks will have to implement the plan agreed upon without any additional conditions and there would be a monetary penalty on those who veer away from the decision.
