UPSC CSE Prelims
Question 67
Which of the following statements best describes the term 'Scheme for Sustainable Structuring of Stressed Assets (S4A)', recently seen in the news ?
View correct answer and explanation
Correct answer: B
Correct Option: B
Explanation: S4A was an RBI framework introduced in 2016 for splitting stressed corporate debt into sustainable and unsustainable portions and reorganising loans/equity.
Option-wise Analysis:
A: Incorrect - Environmental impact or ecological costs concern project appraisal, not S4A.
B: Correct - Correct-RBI’s S4A restructures debt of viable but stressed large corporate borrowers.
C: Incorrect - PSU disinvestment is a government ownership-sale policy, unrelated to this bank-resolution scheme.
D: Incorrect - S4A is a separate RBI banking framework, not a statutory chapter of the Insolvency and Bankruptcy Code.