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Under the Corporate Debt Restructuring (CDR) mechanism, loan assets of banks have been categorised. Which one of the following statements is not correct?
percent; this lot comes under Category I.
  • a)
    Assets belonging to Standard and Sub-standard category come under Category I.
  • b)
    Out of total loan assets, 90 percent is Standard and Sub-standard and Doubtful is 10
  • c)
    Assets belonging to Doubtful and Loss categories come under Category II.
  • d)
    Assets belonging to Doubtful category come under Category II.
  • e)
    Other than the given options.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Under the Corporate Debt Restructuring (CDR) mechanism, loan assets o...
Category I includes a small portion of debt by a bank that might be classified as Doubtful. In that situation, if the account has been classified as Standard/Sub-standard in the books of at least 90% of creditors (by value), the same would be treated as Standard/Sub-standard, only for the purpose of judging the account as eligible for CDR.
Category II includes cases where the projects found to be viable by the creditors but the accounts could not be taken up for restructuring under the CDR system as they fell under Doubtful category.
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Under the Corporate Debt Restructuring (CDR) mechanism, loan assets of banks have been categorised. Which one of the following statements is not correct?percent; this lot comes under Category I.a)Assets belonging to Standard and Sub-standard category come under Category I.b)Out of total loan assets, 90 percent is Standard and Sub-standard and Doubtful is 10c)Assets belonging to Doubtful and Loss categories come under Category II.d)Assets belonging to Doubtful category come under Category II.e)Other than the given options.Correct answer is option 'C'. Can you explain this answer?
Question Description
Under the Corporate Debt Restructuring (CDR) mechanism, loan assets of banks have been categorised. Which one of the following statements is not correct?percent; this lot comes under Category I.a)Assets belonging to Standard and Sub-standard category come under Category I.b)Out of total loan assets, 90 percent is Standard and Sub-standard and Doubtful is 10c)Assets belonging to Doubtful and Loss categories come under Category II.d)Assets belonging to Doubtful category come under Category II.e)Other than the given options.Correct answer is option 'C'. Can you explain this answer? for Banking Exams 2024 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about Under the Corporate Debt Restructuring (CDR) mechanism, loan assets of banks have been categorised. Which one of the following statements is not correct?percent; this lot comes under Category I.a)Assets belonging to Standard and Sub-standard category come under Category I.b)Out of total loan assets, 90 percent is Standard and Sub-standard and Doubtful is 10c)Assets belonging to Doubtful and Loss categories come under Category II.d)Assets belonging to Doubtful category come under Category II.e)Other than the given options.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Banking Exams 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Under the Corporate Debt Restructuring (CDR) mechanism, loan assets of banks have been categorised. Which one of the following statements is not correct?percent; this lot comes under Category I.a)Assets belonging to Standard and Sub-standard category come under Category I.b)Out of total loan assets, 90 percent is Standard and Sub-standard and Doubtful is 10c)Assets belonging to Doubtful and Loss categories come under Category II.d)Assets belonging to Doubtful category come under Category II.e)Other than the given options.Correct answer is option 'C'. Can you explain this answer?.
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