Restructuring Corporate Debt.

Press Information Bureau

Government of India

Ministry of Finance

05-September-2012 17:09 IST

Restructuring Corporate Debt

In order to facilitate restructuring of Corporate Debt of viable entities facing problems, a Corporate Debt Restructuring (CDR) mechanism exists to ensure timely and transparent restructuring for the benefit of all stake holders. CDR system has three tier structure including CDR Standing Forum and its Core Group, CDR Empowered Group and CDR Cell.

The CDR cases are considered by the appropriate Forum as per the guidelines laid down by Reserve Bank of India (RBI) in their Master Circular - Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances.

RBI had constituted a Working Group to review the existing prudential guidelines on restructuring of advances by banks/financial institutions. The Working Group has submitted its report and the same is available on RBI’s website www.rbi.org.in. Recommendations of the Group, inter-alia, include tightening certain norms relating to Corporate Debt Restructuring mechanism.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.

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