instituted by the Reserve Bank of India (RBI) over a decade ago. While it has
been successful in several cases, there have also been significant shortcomings
with the CDR mechanism.
speech, a Deputy Governor of the RBI undertakes a review of the CDR
mechanism. A number of issues are examined in the speech, including –
process by borrowers.
Although the CDR
mechanism, despite its flaws, has helped in turning around companies, any review
efforts can only be piecemeal in nature. The absence of a comprehensive and functional
law on corporate insolvency in India will continue to be sorely felt.