Economics · Banking Regulation

What was the primary purpose of the Corporate Debt Restructuring (CDR) mechanism introduced by the Reserve Bank of India?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1To directly auction the physical collateral assets of defaulting retail borrowers
2To address large corporate NPAs by restructuring loan repayment terms in a timely manner outside the legal courts✓
3To restructure and reschedule the agricultural sector crop loans
4To provide a direct one-time settlement for retail loans

Correct answer

To address large corporate NPAs by restructuring loan repayment terms in a timely manner outside the legal courts

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