Borrowers seeking debt resolution can make a request by December 31: RBI

For personal loans, the resolution plan is to be implemented within 90 days from the date of invocation

The Reserve Bank of India (RBI) on Saturday clarified that borrowers, seeking resolution of their bad debt under the Covid-19 stress scheme as suggested by the KV Kamath committee, need not submit a resolution plan that the lenders would evaluate, rather, they can simply request by December 31.   

“The Resolution Framework does not require any resolution plan in any form to be submitted to the lending institutions at the time of request for invocation," the central bank said in an update of its frequently asked question (FAQ) section on resolution framework for Covid-19 related stress. 

“Rather, for invocation, the