The Reserve Bank of India has declared a doubling of the maximum aggregate exposure to ₹50 crores for expanding the coverage of the Resolution Framework 2.0, this framework was announced by the RBI on May 5 to help small borrowers sail over the impact of the Covid-19's second wave and State-level lockdowns.

RBI Governor Shaktikanta Das commented, as a part of the Monetary Policy Statement, to enable a larger set of borrowers to avail of the benefits under Resolution Framework 2.0, it has been decided to extend the coverage of borrowers under the scheme by heightening the maximum aggregate exposure threshold from ₹25 to ₹50 crores for MSMEs, non-MSME small businesses and loans to individuals for business purposes. As per the statement of Developmental and Regulatory Policies, the mentioned categories of borrowers to whom the lending institutions have gross exposure of not more than ₹50 crores as of March 31, 2021, and which have not been restructured earlier under any of the specified restructuring frameworks, shall be eligible for resolution under Resolution Framework 2.0.

All other conditions will remain the same. it was seen that the banks were seeking an increase in the aggregate exposure limit, as it would help more borrowers. The expectation is that the higher limit will help a majority of such borrowers.