Banking · Prudential Norms and Asset Restructuring

Evaluate the following statements regarding the regulatory framework for retail loan restructuring: Statement 1: A retail loan is considered 'Restructured' when the bank, for economic or legal reasons relating to the borrower's financial difficulty, grants concessions that it would not otherwise consider. Statement 2: According to current RBI norms, any retail loan that undergoes restructuring must be immediately downgraded to the Non-Performing Asset category, regardless of its performance status at the time of restructuring. Statement 3: In specific frameworks (such as during major systemic shocks like a pandemic), the RBI has permitted one-time restructuring windows without an automatic classification downgrade to NPA, provided the loan was 'Standard' as of a specific cut-off date. Which of the statements given above are correct?