Only 1% of eligible cos eager on RBI mortgage recast scheme

Only 1 per cent of eligible corporations have opted for or are considering the debt restructuring facility supplied by the Reserve Bank of India (RBI) underneath its Resolution Framework 2.0.
As a lot as 95 per cent of these choosing, or are inclined to hunt restructuring, belong to the sub-investment grade score class. “Put another way, investment-grade rated corporates are showing high resilience,” stated a Crisil Rating survey of 4,700 corporations.
However, many of the micro and small enterprises in India are unrated. The RBI introduced the scheme on May 5, 2021, for debtors, together with people, small companies, and micro, small and medium enterprises (MSMEs) with combination publicity of as much as Rs 25 crore supplied that they had not availed of advantages underneath any of the sooner restructuring frameworks (together with Resolution Framework 1.0 dated August 6, 2020), and had been labeled as commonplace accounts as on March 31, 2021.
On June 4, 2021, the RBI raised the mixture debt threshold to Rs 50 crore from Rs 25 crore.