DBOD. No. BP.1762/21.04.132/2004-05
May 6, 2005
All Commercial Banks
(excluding RRBs & LABs)
Draft Guidelines on Corporate Debt Restructuring (CDR)
Please refer to our circular DBOD
No. BP.BC. 68/21.04.114/2002-03 dated February 5, 2003 on the captioned subject wherein detailed guidelines on Corporate Debt Restructuring System were issued incorporating the recommendations of the High Level Group under the chairmanship of Shri Vepa Kamesam, then Deputy Governor, Reserve Bank of India, for facilitating timely and transparent mechanism for restructuring debts of viable corporate entities affected by internal or external factors, outside the purview of BIFR, DRT and other legal proceedings, for the benefit
of all concerned.
2. A Special Group under the Chairmanship of Smt.S.Gopinath,
Deputy Governor, Reserve Bank of India has undertaken a review of the Scheme
recently and suggested certain changes / improvements in the existing Scheme
for enhancing its scope and to make it more efficient. Based on the recommendations
made by the Special Group amendments proposed to the guidelines on Corporate
Debt Restructuring are furnished in the Annexure.
3. The major modifications proposed in the existing CDR Scheme relate to
4. The proposed amendments to the guidelines are being issued as a draft for feedback from all concerned. The draft will be open for comments for a period of one month from the date of this letter. Comments on the proposed draft may be addressed to the undersigned at the address given below. Comments can also be sent by e-mail to Shri A.R. Appathurai, Asst.General Manager firstname.lastname@example.org and Shri Rajinder Kumar, Dy.General Manager email@example.com.
Chief General Manager-In-Charge
Corporate Debt Restructuring (CDR) Mechanism
The Reserve Bank of India had undertaken a review of the working of the CDR mechanism in the month of August 2004 and a Special Group was constituted in September 2004 with Smt.S.Gopinath, Deputy Governor, RBI as Chairperson to review and suggest changes / improvements, if any, in the CDR mechanism. Based on the recommendations of the Special Group, CDR guidelines have been further revised. The changes to the existing guidelines are as under: