<h1>RBI Introduces New Framework for Resolving Stressed Assets, Mandating Timely Action and Inter-Creditor Agreements.</h1> The Reserve Bank of India (RBI) has issued the Prudential Framework for Resolution of Stressed Assets, effective immediately, targeting scheduled commercial banks, financial institutions, and certain non-banking financial companies. The framework mandates early identification and reporting of stressed assets, classifying them into categories based on overdue periods. It requires lenders to implement resolution plans, including legal proceedings if necessary, within specified timelines. An inter-creditor agreement is mandated for multi-lender cases. Additional provisions are required for delayed implementations. The framework aims to streamline asset restructuring while ensuring transparency and accountability in financial reporting. Previous guidelines on stressed asset resolution have been withdrawn.