Asset Classification Norms :
While a restructuring proposal is under consideration by the JLF/CDR, the usual asset classification norm would continue to apply. The process of reclassification
of an asset should not stop merely because restructuring proposal is under consideration by the JLF/CDR.
Incentive for quick implementation of a restructuring package, the special asset classification benefit on restructuring of accounts as per extant instructions would be available for accounts undertaken for restructuring under these guidelines, subject to adherence to the overall timeframe for approval of restructuring package detailed in paragraphs 27.3 and 27.4 of Master Circular no. RBI/2015-16/101 DBR.No.BP.BC.2/21.04.048/2015-16 dated July 1, 2015 to be read along with Reserve bank of India circular no. DBOD.BP.BC.No.45/21.04.132/2014-15 dated October 21, 2014 and implementation of the approved package within 90 days from the date of approval. The asset classification status as on the date of formation of JLF would be the relevant date to decide the asset classification status of the account after implementation of the final restructuring package. As mentioned in paragraph 20.2.3 in Part – B of this Master Circular, the special asset classification benefit as above will however be withdrawn for all restructurings with effect from April 1, 2015 with the exception of provisions related to changes in Date of Commencement of Commercial Operations (DCCO) in respect of infrastructure and non-infrastructure project loans.