Potential Viability of a case varies case to case depending upon the benchmark parameters derived through various sources e. Another important part here is that, Borrowers are classified in 4 classe s as given below:. Category A : Companies unable to pay due to external factors e. Category B : Companies unable to pay due to external factors and also due to weak resources, inadequate vision and lack of professional support.
Category C : Borrowers are overambitious and diversified into unrelated fields with or without lenders permission. Category D : Financially undisciplined borrowers. Conclusion:- It is a scheme made for those who are unable to pay the sum in full where some debt is forgiven by creditor in exchange of equity position in company.
Very nice article and ease of language to understand …waiting for such articles as i am serving in PNB Housing Finaance Ltd in Surat Gujarat branch as legal manager -Lawyer by profile and need articles to increase knowledge in CDR.
Your email address will not be published. Post Comment. The specific exclusions are set out in section 9 of the designation instrument for the banking sector and include:.
The privacy safeguards set out the privacy rights and obligations for participants in the CDR system. For CDR data to have a CDR consumer, at least one person needs to be identifiable or reasonably identifiable from the CDR data or other information held by that participant. This means that if there is no person that is identifiable or reasonably identifiable from the CDR data, the privacy safeguards do not apply — for example, because it is product data for which there is no consumer, or it has been successfully de-identified in accordance with the CDR Rules.
This process has been designed to ensure that no consumers will remain reasonably identifiable, either from the data itself, or when combined with other information held by any person.
Chapter C also provides information on seeking consent to de-identify CDR data for the purpose of disclosing it. The telecommunications sector is currently proposed to follow. The Federal Treasury is the lead agency for the CDR, and in addition to responsibility for the overall program is accountable for the development of rules to implement the CDR, and for advice to government on which sectors the CDR should apply to in future.
The Data Standards Body DSB within Treasury is responsible for the creation of the technical standards for the sharing of consumer data. The current version of the standards is available at: Consumer Data Standards. The OAIC has a range of investigative and enforcement powers to handle privacy complaints and carry out other regulatory activities with respect to privacy. For a full list of media releases, speeches and newsletters about the consumer data right, see: Latest communications.
Skip to Content Skip to Sitemap. Home Focus areas. If not found prima facie feasible, the lenders may start action for recovery of their dues.
The CDR Cell may also take outside professional help. The CDR Cell will prepare the restructuring plan in terms of the general policies and guidelines approved by the CDR Standing Forum and place for the consideration of the Empowered Group within 30 days for decision.
The Empowered Group can approve or suggest modifications, so, however, that a final decision must be taken within a total period of 90 days. However, for sufficient reasons the period can be extended maximum upto days from the date of reference to the CDR Cell.
However, potentially viable cases of NPAs will get priority. This approach would provide the necessary flexibility and facilitate timely intervention for debt restructuring. Prescribing any milestone s may not be necessary, since the debt restructuring exercise is being triggered by banks and financial institutions or with their consent. In no case, the requests of any corporate indulging in wilful default or misfeasance will be considered for restructuring under CDR.
The debtors shall have to accede to the DCA, either at the time of original loan documentation for future cases or at the time of reference to Corporate Debt Restructuring Cell. Similarly, all participants in the CDR mechanism through their membership of the Standing Forum shall have to enter into a legally binding agreement, with necessary enforcement and penal clauses, to operate the System through laid-down policies and guidelines. Under this clause, both the debtor and creditor s shall agree to a legally binding 'stand-still' whereby both the parties commit themselves not to taking recourse to any other legal action during the 'stand-still' period, this would be necessary for enabling the CDR System to undertake the necessary debt restructuring exercise without any outside intervention judicial or otherwise.
Restructuring of corporate debts under CDR could take place in the following stages:. The prudential treatment of the accounts, subjected to restructuring under CDR, would be governed by the following norms:. A rescheduling of interest element at any of the foregoing first two stages would not cause an asset to be downgraded to sub-standard category subject to the condition that the amount of sacrifice, if any, in the element of interest, measured in present value terms, is either written off or provision is made to the extent of the sacrifice involved.
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