6. Workout Plan

Effective from Jan 06 2022 - Jun 30 2020
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i.	Banks should develop a workout plan agreed between the viable borrower and the bank in order to return the non-performing borrower to a fully performing status in the shortest feasible time-frame, matching the borrower’s sustainable repayment capacity with the correct restructuring option(s).
ii.	The workout plan needs to be approved by a designated Management Committee based upon the bank’s delegation of authority matrix.
iii.	Banks should establish and document a policy with clear and objective time-bound criteria for the mandatory transfer of loans from Loan Originating Units to the Workout Unit along with the specification of relevant approvals required for such transfers.
iv.	The policy should include details on areas where proper collaboration is required between the Workout Unit and Loan Originating Units especially in scenarios where the borrowers are showing signs of stress but still being managed by the Loan Originating Units.