Module: General Practice
Q163: According to the RBI's "Prudential Framework for Resolution of Stressed Assets," what is the "Review Period" available to lenders once a default occurs?
✅ Correct Answer: C
🎯 Quick Answer:
30 Days.Regulatory Rule: As per the June 7, 2019 circular (Prudential Framework), as soon as a default occurs (even for 1 day), lenders must initiate a review.
Timeline: They have a 30-day Review Period to decide on the resolution strategy (e.g., whether to restructure, sell, or pursue legal action). Causal Reasoning: This ensures that banks do not sit idle on defaults.
They must have a plan in place quickly to prevent value erosion.