The Reserve Bank of India – RBI today released a report reviewing the existing guidelines on restructuring of loans by banks and financial institutions. The report prepared by a working group headed by Mr. B. Mahapatra has suggested that banks should seek personal guarantee from promoters and adopt a 'carrot-and-stick policy' while restructuring loans of corporates. The report adds that in cases where the restructuring package could not be implemented due to promoters' non-adherence to terms and conditions, the banks should exercise exit option at the earliest to minimize the losses.