New ICA for RBI’s New Framework on Debt Restructuring

On 7 June 2019, the Reserve Bank of India (RBI) issued a revised prudential framework for resolution of stressed assets (RBI Framework) which filled the void in the pre-insolvency and Bankruptcy Code, 2016 (IBC) restructuring regime after the Supreme Court stuck down RBI's previous circular for resolution of stressed assets dated 12 Feb 2018 (12 Feb Circular) on the ground that universal and mandatory reference to IBC in ultra vires RBI's powers.