Which of the following statements best describes the term 'Scheme for Sustainable Structuring of Stressed Assets (S4A)', recently seen in the news?

Which of the following statements best describes the term 'Scheme for…

It is a procedure for considering ecological costs of developmental schemes formulated by the Government.
It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.
It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.
It is an important provision in 'The Insolvency and Bankruptcy Code' recently implemented by the Government.

Answer

(a) Incorrect. S4A is not an environmental appraisal mechanism; it has nothing to do with ecological costing of development projects.
(b) Correct. S4A (Scheme for Sustainable Structuring of Stressed Assets) was introduced by the RBI to restructure the debt of large stressed corporate borrowers that are facing genuine financial stress but are considered viable.
(c) Incorrect. It is not a government disinvestment programme for CPSEs.
(d) Incorrect. S4A is not a provision of the Insolvency and Bankruptcy Code; it is a separate RBI debt restructuring framework.

Therefore, the correct answer is (b).