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2) In the backdrop of recently released revised prudential framework for resolution of stressed assets, “RBI’s debt resolution rules are a mixed bag”, Critically analyse. (250 words)

Topic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. 

2) In the backdrop of recently released revised prudential framework for resolution of stressed assets, “RBI’s debt resolution rules are a mixed bag”, Critically analyse. (250 words)

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Why this question:

The article provides for a detailed analysis of RBI’s debt resolution strategies their pros and cons.

Key demands of the question:

Answer is to analyse  how the steps taken by RBI had both merits and demerits and what needs to be done to manage the current prevailing conditions of stressed assets.

Directive word

Critically analyzeWhen asked to analyze, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgement.

Structure of the answer:

Introduction

In a few introductory lines explain the role played by RBI.

Body

Discuss the role of RBI in providing for a prudential framework for resolution of stressed assets.

Discuss what are the approaches carried out by RBI in the recent past.

Explain how changes are both good and not so good – timely resolution of sticky assets through mounting punitive provisions etc. take hints from the article and list down the pros and cons.

Suggest your opinion and conclude with fair and balanced conclusion.

Conclusion

Reassert the importance of key role played by the RBI.

CategoriesINSIGHTS