UPSC Prelims 2017·GS1·economy·money and banking

Which of the following statements best describes the term 'Scheme for Sustainable Structuring of Stressed Assets (S4A)', recently seen in the news?

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Last updated 23 May 2026, 3:31 pm IST
  1. AIt is a procedure for considering ecological costs of developmental schemes formulated by the Government.
  2. BIt is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.Correct
  3. CIt is a disinvestment plan of the Government regarding Central Public Sector Undertakings.
  4. DIt is an important provision in 'The Insolvency and Bankruptcy Code' recently implemented by the Government.

Explanation

The Scheme for Sustainable Structuring of Stressed Assets (S4A) was introduced by the Reserve Bank of India (RBI) in 2016. Its primary objective was to provide a framework for the resolution of large stressed assets (non-performing assets or NPAs) in the Indian banking system. S4A aimed to enable the financial restructuring of large corporate entities that were facing genuine difficulties but had viable underlying businesses, by dividing their debt into sustainable and unsustainable parts, thereby assisting banks in tackling the NPA crisis effectively.
economy: Which of the following statements best describes the term 'Scheme for Sustainable Structuring of Stressed Assets (S4A)',
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