CDR Cases - RBI Analysis

CDR (Corporate Debt Restructuring) is a process where banks provide support through restructuring of genuine cases of companies in financial difficulties because of factors beyond their control. The CDR mechanism is meant to revive such cases as well as to provide safety to he money lent by the banks and financial institutions. Out of the total number of cases referred under CDR, 49 per cent have been successfully implemented till date, according to Reserve Bank of India (RBI). However, RBI observed that the number of cases referred to the CDR cell has come down in the recent past. One of the reasons for this reduction could be the Reserve Bank's move to allow banks to restructure their large credits with aggregate exposure of ` 100 crore and above outside CDR under the Joint Lenders' Forum (JLF) constituted under the provisions of the 'Framework to Revitalize the Distressed Assets in the Economy' which became effective from April 1, 2014.