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

1. It is a procedure for considering ecological costs of developmental schemes formulated by the Government.
2. It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.
3. It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.
4. It is an important provision in ‘The Insolvency and Bankruptcy Code recently implemented by the Government.

Explanation

Option (b) is correct

• The RBI had introduced the S4A scheme in 2016 and ended in February 2018.
• It aims to provide a framework for banks to segregate the sustainable and unsustainable portions of the debt, facilitating a more effective resolution process.

Answer: (b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties; Difficulty Level: Medium