Giving a regulatory fiat under the circumstances was not considered feasible on account of two reasons- first, we needed to differentiate between the COVID induced stress and structural viability issues; and, second - the lending institutions were expected to assess the viability of each borrower because they had the pulse of borrowers’ cash flows and both- risks and reward were theirs to reap. 13.
There were also demands to design sector specific schemes. As regards the sector specific demands, it is one of the stiffest challenges for a regulator since it gives rise to moral hazard issues. The approach thus was to help lending institutions design their schemes in a suitable manner to build in such flexibility 5  in the Resolution Frameworks.