The need to set up the working group arose with a view to aligning our restructuring guidelines with the best international practices and accounting standards. Another motivation for setting up the working group was to clarify certain instructions which were perceived to be ambiguous.
The working group approached the whole issue from societal point of view that restructuring served a useful purpose as it protects the productive assets of the economy. It also helps the borrowers to recover from temporary problems and provides incentives to banks to nurture such borrowers by allowing them regulatory forbearance of keeping the account as “standard” or unimpaired.