Illiquidity could also lead to insolvency if markets abruptly stop supplying funding liquidity and some of the apparently liquid assets in the banks’ portfolios turn out to be illiquid (i.e. could be sold at significant loss only) under a condition of generalized market stress.
A scheme of one-time restructuring without an asset classification downgrade was permitted to GST registered MSME accounts that were in default but standard as on January 1, 2019.