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RBI Harmonises NBFC Restructuring Norms with Banks

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2013-14/459 · issued 23 Jan 2014 · ~2 min read

Quick answerRBI aligned NBFC restructuring guidelines with bank norms, effective January 23, 2014. Key changes include DCCO extension not counting as restructuring and special asset classification benefits for certain loans, withdrawn from April 1, 2015.

The rule, in the simplest words

NBFCs must follow the same restructuring rules as banks.
Mere extension of DCCO for infra, non-infra, and CRE projects up to a specified period does not count as restructuring.
Special asset classification benefits for CDR, consortium, and SME debt restructuring cases were withdrawn from April 1, 2015, except for DCCO changes.

How it plays out — a real example

A treasury officer in Indore, Mr. Kumar, is reviewing a restructuring proposal for a client's infrastructure project loan. He checks if the mere extension of the Date of Commencement of Commercial Operations (DCCO) will count as restructuring. After verifying that the extension is within the specified period, he decides not to classify the loan as restructuring, providing relief for the client.

What changed

RBI harmonised NBFC restructuring guidelines with bank norms, following the Mahapatra Working Group recommendations. Mere extension of DCCO for infra, non-infra, and CRE projects up to a specified period no longer counts as restructuring. Special asset classification benefits for CDR, consortium, and SME debt restructuring cases were introduced but withdrawn from April 1, 2015, except for DCCO changes.

What it means for you

NBFCs must now follow the same restructuring rules as banks, reducing regulatory arbitrage. The DCCO extension relaxation provides relief for project loans without triggering NCL classification. However, the withdrawal of special asset classification benefits from April 2015 means NBFCs must plan for eventual standard asset treatment post-restructuring.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Adopt the enclosed Directions for all restructuring of advances immediately.
Review existing restructuring policies to align with bank guidelines, especially for consortium and CDR cases.
Monitor DCCO extensions for infra, non-infra, and CRE projects to ensure they stay within specified periods to avoid restructuring classification.
Prepare for the withdrawal of special asset classification benefits from April 1, 2015, except for DCCO changes.
Train staff on harmonised norms to ensure consistent application across all lending activities.

Who it affects

All NBFCs excluding primary dealers, NBFCs involved in consortium lending, NBFCs with infrastructure and CRE project loans, NBFCs handling SME debt restructuring

❓ Common questions

Regulatory timeline

Stated effective date effective January 23, 2014
Decoded by BankPulse 2026-06-18 11:06 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Does extending the DCCO for a project loan count as restructuring under the new guidelines?

No, mere extension of DCCO up to a specified period for infra, non-infra, and CRE projects does not tantamount to restructuring, as per the January 2014 guidelines.

When will the special asset classification benefit for restructured loans be withdrawn?

The special asset classification benefit will be withdrawn from April 1, 2015, except for provisions related to changes in DCCO for infrastructure and non-infrastructure project loans.

Which NBFCs are covered by this circular?

All NBFCs excluding primary dealers are required to follow the harmonised restructuring guidelines.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

RBI’s words: “Official withdrawal register entry #953: Notification No. DNBS(PD).No.271/CGM(NSV)-2014 — "Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 20”

📜 Read the original circular — full text as issued by RBI

RBI/2013-14/459
 DNBS.CO. PD. No. 367/03.10.01/2013-14
 January 23, 2014
 All NBFCs excluding Primary Dealers
 Dear Sirs,
 Review of Guidelines on Restructuring of Advances by NBFCs 
 As indicated in paragraph 42 of the Second Quarter Review of Monetary Policy 2013-14 announced on October 29, 2013, the extant instructions on restructuring of advances by NBFCs have been reviewed on the lines of the recommendations of the Reserve Bank’s Working Group (Chairman: Shri B. Mahapatra) to review prudential guidelines on restructuring of advances by banks and financial institutions and also relevant guidelines issued to banks in this regard.
 2. NBFCs being part of the financial institutions that lend to various sectors, also undertake restructuring of advances, either as part of a consortium or otherwise. It has therefore been decided to harmonise the guidelines on restructuring of advances with that of banks. All NBFCs other than primary dealers shall hereafter follow the Directions in the notification enclosed .
 3. The major provisions of the Directions include the relaxation, that mere extension of Date of Commencement of Commercial Operations (DCCO) up to a specified period, will not tantamount to restructuring for infra, non-infra and CRE projects. Special asset classification benefit will be made available to CDR and consortium cases including SME debt restructuring mechanism, apart from infrastructure and non-infrastructure project loans subject to certain conditions. The special asset classification benefit will however be withdrawn with effect from April 1, 2015 with the exception of provisions related to changes in DCCO in respect of infrastructure as well as non-infrastructure project loans.
 Yours faithfully,
 (N. S. Vishwanathan)
 Principal Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/459 · issued 23 Jan 2014. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8706&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.