RBI had, on September 7, 2020, issued a Circular on ‘Resolution Framework for COVID-19-related Stress – Financial Parameters’ (‘Original Circular’), setting out the key ratios and their sector specific thresholds to be considered by lending institutions while finalising resolution plans for eligible borrowers under the ‘Resolution Framework for COVID-19 related stress’ issued by the RBI on August 6, 2020. The key ratios comprise of four operational ratios, namely, Total Debt / EBITDA, Current Ratio, Debt Service Coverage Ratio (DSCR) and Average Debt Service Coverage Ratio (ADSCR) (collectively, ‘Operational Ratios’), along with the Total Outside Liabilities / Adjusted Tangible Net Worth (TOL/ATNW) Ratio, representing the debt-equity mix of the borrower post implementation of the resolution plan. Given the resurgence of the Covid-19 pandemic in 2021, the RBI on August 6, 2021 decided to defer the target date for meeting the specified thresholds in respect of the Operational Ratios from March 31, 2022 (as prescribed under the Original Circular) to October 1, 2022. The target date for achieving the TOL/ATNW Ratio will remain unchanged i.e., March 31, 2022.