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Question

What is the main criterion for an infrastructure project loan to be retained as a 'standard asset' after restructuring?

A The project must achieve financial closure within the specified time frame. Correct Answer Incorrect Answer
B The project loan must not be involved in court cases. Correct Answer Incorrect Answer
C The fresh DCCO must be fixed within the specified limits and the account must continue to be serviced as per the restructured terms. Correct Answer Incorrect Answer
D The project must not be delayed due to legal or extraneous reasons. Correct Answer Incorrect Answer
E The project must have commenced commercial operations within the original DCCO. Correct Answer Incorrect Answer

Solution

The fresh DCCO must be fixed within the specified limits and the account must continue to be serviced as per the restructured terms. If a project loan classified as a 'standard asset' is restructured any time during the period up to two years from the original DCCO, it shall be retained as a standard asset if the fresh DCCO is fixed within the specified limits and further provided the account continues to be serviced as per the restructured terms.

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