COVID Resolution Plan: Operational Ratio Deadline Extended to Oct 2022
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2021-22/80 · issued 06 Aug 2021 · ~2 min read
Quick answerRBI has extended the deadline for borrowers under COVID resolution plans to meet four operational financial ratios (Total Debt/EBITDA, Current Ratio, DSCR, ADSCR) to October 1, 2022. The TOL/ATNW ratio deadline remains March 31, 2022.
What changed
The target date for achieving specified thresholds for four operational ratios—Total Debt/EBITDA, Current Ratio, DSCR, and ADSCR—has been pushed back from an earlier date to October 1, 2022. This extension is due to the resurgence of COVID-19 in 2021 and the difficulties borrowers face in meeting these parameters. The deadline for the TOL/ATNW ratio remains unchanged at March 31, 2022.
What it means for you
Banks and lenders now have additional time—until October 2022—for borrowers under COVID resolution plans to meet key operational financial health metrics. This provides relief to stressed borrowers still recovering from the pandemic's second wave. However, the debt-equity mix ratio (TOL/ATNW) must still be achieved by March 2022, so lenders need to monitor that separately.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update your internal tracking systems to reflect the new October 1, 2022 deadline for the four operational ratios (Total Debt/EBITDA, Current Ratio, DSCR, ADSCR).
Ensure that the TOL/ATNW ratio deadline of March 31, 2022 remains in your compliance calendar and is not overlooked.
Communicate the revised timelines to your resolution plan teams and relevant borrowers to align expectations.
Review existing resolution plans to confirm which borrowers are affected and adjust monitoring schedules accordingly.
Who it affects
All Commercial Banks including Small Finance Banks, Local Area Banks, and Regional Rural Banks, All Primary (Urban) Co-operative Banks, State Co-operative Banks, and District Central Co-operative Banks, All All-India Financial Institutions, All Non-Banking Financial Companies including Housing Finance Companies, Borrowers with COVID-19 resolution plans under the August 6, 2020 framework
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 07:39 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Which specific ratios have had their deadline extended?
The four operational ratios—Total Debt/EBITDA, Current Ratio, Debt Service Coverage Ratio (DSCR), and Average Debt Service Coverage Ratio (ADSCR)—now have a target date of October 1, 2022.
Is the TOL/ATNW ratio deadline also extended?
No, the target date for achieving the Total Outside Liabilities/Adjusted Tangible Net Worth (TOL/ATNW) ratio remains unchanged at March 31, 2022.
Why did RBI extend the deadline?
Due to the resurgence of the COVID-19 pandemic in 2021, which posed difficulties for borrowers in meeting the operational parameters as originally scheduled.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #292: DOR.STR.REC.38/21.04.048/2021-22 — "Resolution Framework for COVID-19-related Stress - Financial Parameters - Revised Timelines for Compliance" dated August 6,”
📜 Read the original circular — full text as issued by RBI
RBI/2021-22/80
DOR.STR.REC.38/21.04.048/2021-22
August 6, 2021
All Commercial Banks (including Small Finance Banks, Local Area Banks and Regional Rural Banks)
All Primary (Urban) Co-operative Banks/State Co-operative Banks/ District Central Co-operative Banks
All All-India Financial Institutions
All Non-Banking Financial Companies (including Housing Finance Companies)
Madam / Dear Sir,
Resolution Framework for COVID-19-related Stress – Financial Parameters – Revised timelines for compliance
Please refer to the circular DOR.No.BP.BC/13/21.04.048/2020-21 dated September 7, 2020 inter alia advising the key ratios and their sector specific thresholds to be considered by lending institutions while finalising the resolution plans in respect of eligible borrowers under Part B of the Annex to the Resolution Framework for Covid-19 related stress issued on August 6, 2020 .
2. The key ratios consisted of four operational ratios, viz., Total Debt / EBITDA, Current Ratio, Debt Service Coverage Ratio (DSCR) and Average Debt Service Coverage Ratio (ADSCR), along with the ratio Total Outside Liabilities / Adjusted Tangible Net Worth (TOL/ATNW) representing the debt-equity mix of the borrower post implementation of the resolution plan.
3. In view of the resurgence of the Covid-19 pandemic in 2021 and recognising the difficulties it may pose for the borrowers in meeting the operational parameters, it has been decided to defer the target date for meeting the specified thresholds in respect of the four operational parameters, viz. Total Debt / EBIDTA, Current Ratio, DSCR and ADSCR, to October 1, 2022.
4. The target date for achieving the ratio TOL/ATNW, as crystallised in terms of the resolution plan, shall remain unchanged as March 31, 2022.
Yours faithfully,
(Manoranjan Mishra)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2021-22/80 · issued 06 Aug 2021. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12140&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.