Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news ?
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Answer: B. S4A was launched by the Reserve Bank of India in June 2016. It let banks rework the debt of large stressed companies with genuine trouble. The debt was split into a sustainable part and a part converted into equity or similar instruments. So option B.
Watch for: The IBC came at about the same time, so option D looks tempting (as of 2017; RBI withdrew S4A and similar schemes in February 2018).
Why the other options are wrong
- A. Wrong because S4A has nothing to do with ecological costs.
- C. Wrong because S4A is not a disinvestment plan.
- D. Wrong because S4A was an RBI scheme, not part of the Insolvency and Bankruptcy Code.
Source to check: RBI circular 'Scheme for Sustainable Structuring of Stressed Assets', 13 June 2016 (rbi.org.in)
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.