The Reserve Bank of India (RBI) has informed that five complaints /representations regarding irregularities in restructuring of loans in public sector banks in the country have been received. One representation is from Institute of Cost & Works Accountants of India (ICWAI), a complaint from a Member of Parliament and three complaints are from other persons, said the Union Minister of State for Finance in the Rajya Sabha.
A Working Group (WG), constituted by RBI to review the Prudential guidelines on Restructuring of Advances, had examined the issues related to misuse of restructuring mechanism and made various recommendations for rationalizing and tightening the existing guidelines. Taking into account the recommendations of WG and comments received from various stakeholders, a detailed guideline on restructuring of advances was issued by RBI on May 30, 2013, he added.