Module: General Practice
Q185: Scenario: A bank has sanctioned a working capital limit of ₹12 Crore to a Medium Enterprise. The borrower is facing financial stress.
Question: Under the standing "Framework for Revival and Rehabilitation of MSMEs," is this borrower eligible for the Committee-based Corrective Action Plan (CAP) mechanism?
✅ Correct Answer: C
The specific "Framework for Revival and Rehabilitation of MSMEs," which mandates the formation of a Committee for Stressed MSMEs, applies to MSME borrowers with aggregate loan limits up to ₹25 Crore.
Borrowers above this limit typically fall under the broader "Prudential Framework for Resolution of Stressed Assets" (June 7, 2019 circular) applicable to larger corporate exposures.
Borrowers above this limit typically fall under the broader "Prudential Framework for Resolution of Stressed Assets" (June 7, 2019 circular) applicable to larger corporate exposures.