RBI issues fresh norms for loan restructuring

The Reserve Bank of India (RBI) has revamped the norms for restructuring advances, including non-industrial credit.

Now, the non-industrial companies can also use the corporate debt restructuring mechanism (CDR).

The new regulations harmonise the prudential norms across all debt restructuring mechanisms.

“Since the principles underlying the restructuring of all advances are identical, the prudential regulations too need to be aligned in all cases,” RBI said in a communication to banks.

Accounts restructured due to natural calamities will continue to be covered by the guidelines issued by the central bank’s rural planning and credit department.