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RBI MSME Restructing & Stressed Asset Resolution Framework

RBI MSME Restructuring & Stressed Asset Resolution Framework (TOOL-086)

Diagnose SMA-0, SMA-1, and SMA-2 incipient stress status and Corrective Action Plan (CAP) triggers prior to 90-day NPA classification.

Mandatory Resolution Action: –

Resolution Window: –

Statutory Guide: RBI Prudential Framework for MSMEs

1. SMA-1 Trigger (31-60 Days): Banks are required to formulate a formal Corrective Action Plan (CAP) with options for Funded Interest Term Loans (FITL) and repayment rescheduling.

2. Day 90 Cut-Off: Failure to execute restructuring before Day 90 results in automatic NPA classification under CRILC reporting.

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