(a) Borrowers i.e. individuals and small businesses and MSMEs having aggregate exposure of upto ₹ crore and who have not availed restructuring under any of the earlier restructuring frameworks (including under the Resolution Framework 1.0 dated August 6, 2020), and who were classified as ‘Standard’ as on March 31, 2021 shall be eligible to be considered under Resolution Framework 2.0.
A substantial reallocation of capital and labour in the near future across sectors and firms, however, is likely. These adjustments may be painful and lead to temporarily higher unemployment, discouragement and low labour market participation, inefficient matches of workers with firms. Several contributions to the workshop discuss instruments that might favour or hamper these adjustments.