BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Corporate Debt Restructuring
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Corporate Debt Rollover
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Company Debt Rollover
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Corporate Deposit Restructuring
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Detailed explanation-1: -Corporate Debt Restructuring, in short CDR is a scheme evolved by the Reserved Bank of India (RBI) through a circular issued on 23rd August, 2001 for implementation by banks and Financial Institutions (FIs) for realisation of amount of debt from the debtors who are not able to pay the amount in full.
Detailed explanation-2: -Corporate debt restructuring refers to the reorganization of a distressed company’s outstanding obligations to its creditors. The purpose of a corporate debt restructuring is to restore liquidity to a company so that it can avoid bankruptcy.
Detailed explanation-3: -The CDR Mechanism covers only multiple banking accounts, syndication/consortium accounts, where all banks and institutions together have an outstanding aggregate exposure of Rs. 10 Crore and above. BIFR cases are not eligible for restructuring under CDR system.