For instance, the COVID resolution packages set out parameters to ensure that viable borrowers are benefited, and the dispensations are available only for a finite window. Meanwhile, banks were advised to raise capital and restrictions were placed on dividend payments in early days itself so as to conserve the capital of banks and improve their risk absorbing capacity.
2/7  BIS - Central bankers' speeches  11. Even before onset of the pandemic, RBI had used innovative ways in resolving distressed institutions without requiring infusion of tax-payer money, while safeguarding depositor interest. Instead of applying traditional template of merger of a weak bank with a strong domestic bank or Government bailing out a bank, innovative approaches were adopted.