What is a corporate debt restructuring (CDR) mechanism
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H.P.Dubey
The corporate debt restructuring (CDR) mechanism to restrict the use of the loan restructuring mechanism only to deserving cases.
The decision was taken in light of the increasing number of debt restructuring over the past two years. The effect was that, the banks and their clients are taking undue advantage of the CDR mechanism, giving in the issue of non-performing assets’ (NPA) formation.
Now, the banks should have the committee which will consist of an expert from the legal field, investigative agencies and finance professional, and the task will be to make sure that there will not be any scope for allegations.
The government will set up an independent oversight mechanism which will not have any government representative or serving banker but is supposed to have some experts who inspect from the accuracy point of view whether the case brought up is genuine.
The oversight mechanism committee will act as only an advisory body, will help the bank vet a particular case going to the committee which will not be mandatory for a bank.
H.P.Dubey
The corporate debt restructuring (CDR) mechanism to restrict the use of the loan restructuring mechanism only to deserving cases.
The decision was taken in light of the increasing number of debt restructuring over the past two years. The effect was that, the banks and their clients are taking undue advantage of the CDR mechanism, giving in the issue of non-performing assets’ (NPA) formation.
Now, the banks should have the committee which will consist of an expert from the legal field, investigative agencies and finance professional, and the task will be to make sure that there will not be any scope for allegations.
The government will set up an independent oversight mechanism which will not have any government representative or serving banker but is supposed to have some experts who inspect from the accuracy point of view whether the case brought up is genuine.
The oversight mechanism committee will act as only an advisory body, will help the bank vet a particular case going to the committee which will not be mandatory for a bank.
H.P.Dubey
The corporate debt restructuring (CDR) mechanism to restrict the use of the loan restructuring mechanism only to deserving cases.
The decision was taken in light of the increasing number of debt restructuring over the past two years. The effect was that, the banks and their clients are taking undue advantage of the CDR mechanism, giving in the issue of non-performing assets’ (NPA) formation.
Now, the banks should have the committee which will consist of an expert from the legal field, investigative agencies and finance professional, and the task will be to make sure that there will not be any scope for allegations.
The government will set up an independent oversight mechanism which will not have any government representative or serving banker but is supposed to have some experts who inspect from the accuracy point of view whether the case brought up is genuine.
The oversight mechanism committee will act as only an advisory body, will help the bank vet a particular case going to the committee which will not be mandatory for a bank.