The Indian banking sector is going through the rough patch due to corporate distress and slowdown in economy. In an effort to revive economy the Reserve Bank of India (RBI) has introduced many schemes like Corporate Debt Restructuring (CDR), Joint Lenders Forum (JLF). In continuance of its effort in same direction, RBI in its “Framework for Revitalising Distressed Assets in the Economy – Guidelines on Joint Lenders’ Forum (JLF) and Corrective Action Plan (CAP)” has suggested the change in management of the restructured stressed assets via Strategic Debt Restructuring Scheme.
Strategic Debt Restructuring was introduced by RBI in June, 2015 to enable banks recover their bad loan by taking the management control of the distressed companies. The scheme has been introduced to revive the distressed companies which fail to achieve the milestones under Corporate Debt Restructuring by changing the management of the company.
JLF/Corporate Debt Restructuring Cell (CDR) may consider the following options when a loan is restructured:
Other Provisions of Scheme
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