Question

UPSC Prelims 2017 Question:

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

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

Answer (Detailed Solution Below)

Option 2: It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.

Detailed Solution

Explanation:

The Reserve Bank of India (RBI) has issued guidelines on a ‘Scheme for Sustainable Structuring of Stressed Assets’ in order to further strengthen the lenders’ ability to deal with stressed assets and to put real assets back on track by providing an avenue for reworking the financial structure of entities facing genuine difficulties.
Accordingly, the RBI, after due consultation with lenders, has formulated the ‘Scheme for Sustainable Structuring of Stressed Assets’ (S4A) as an optional framework for the resolution of large stressed accounts. The S4A envisages the determination of the sustainable debt level for a stressed borrower and the bifurcation of the outstanding debt into sustainable debt and equity/quasi-equity instruments which are expected to provide an upside to the lenders when the borrower turns around.

Therefore, option (2) is the correct answer.

Subject: Economics | Money and Banking

Latest UPSC Exam 2027 Updates

Last updated on Sep, 2026

→ UPSC 2027 Notification will be released on 13 January 2027 at upsconline.nic.in.

→ Check out the latest UPSC Syllabus here.

→ Download UPSC Model Answers for Mains 2026

→ UPSC Mains Question Paper 2026 is out now for Essay & GS Paper 1, 2, 3 & 4.

→ UPSC Calendar 2027 has been released.

→ Enroll in Vajiram & Ravi’s UPSC Mains Test Series 2027 for structured answer writing practice, expert evaluation, and exam-oriented feedback.

→ Join Vajiram & Ravi’s UPSC Mentorship Program 2027 for personalized guidance, strategy planning, and one-to-one support from experienced mentors.

→ Go through the UPSC Mains Previous Year Papers to enhance your preparation.

→ UPSC has released UPSC Toppers List 2025 with the Civil Services final result on its official website.

→ Also check Best UPSC Coaching in India

Tags: factual UPSC Prelims 2017 UPSC Prelims 2017 Question

Abhishek Singh

Abhishek Singh is an SEO Specialist and content strategist with over 4.5 years of experience in driving organic growth across education and service-based industries. He specializes in on-page SEO, technical SEO, content optimization, and data-driven strategies that improve search visibility and organic traffic. His work focuses on creating accurate, well-researched, and search-optimized content that helps students, professionals, and online audiences find reliable information. By combining SEO expertise with a strong understanding of search intent and evolving search technologies, he works to build content that delivers visibility, engagement, and long-term trust.