RBI renewed loan restructuring norms

The Reserve Bank of India (RBI) renewed the restructuring advances norms including non-industrial credit.

According to this the non-industrial companies will also be able to use the corporate debt restructuring mechanism (CDR).

With the renewal of the restructuring advances norms, the prudential norms will get coordinated with 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 streamlined due to natural calamities will be covered by the guidelines issued by the central bank’s rural planning and credit department.