RBI1 min read
Debt Restructuring
A process where lenders agree to modify terms of a loan (interest rate, tenure, repayment schedule) to help a stressed borrower avoid default. RBI frameworks include One Time Settlement (OTS), Resolution under IBC, and MSME restructuring norms.
Last updated: 17 May 2026
Frequently Asked Questions (FAQs)🔗
Q1. What is Debt Restructuring in Indian corporate law?▼
A process where lenders agree to modify terms of a loan (interest rate, tenure, repayment schedule) to help a stressed borrower avoid default. RBI frameworks include One Time Settlement (OTS), Resolution under IBC, and MSME restructuring norms.
Q2. Why is Debt Restructuring important for compliance?▼
Debt Restructuring is governed by the Reserve Bank of India under applicable banking and monetary policy frameworks. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Q3. Who should know about Debt Restructuring?▼
Debt Restructuring is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with RBI regulatory matters in India.
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