The Reserve Bank of India (RBI) has released new prudential guidelines for banks on provisioning against restructured loans.

The new guidelines ask banks to raise capital requirements and force them to seek personal guarantees from controlling stakeholders of firms whose loan terms are eased. Banks in India often seek to restructure loans given to troubled companies instead of putting them under the category of non-performing assets.

RBI believes that requiring stakeholders' personal guarantees will ensure their commitment to the restructuring package.

The central bank said, "The promoters' sacrifice should invariably be brought upfront while extending the restructuring benefits to the borrowers."

Indian banks sought restructuring a record $16.6 billion in loans in the financial year ended March 31, 2013. The figure represents a jump of 38 per cent year-on-year.

Starting June 1, banks will also have to set aside provisioning for 5 per cent of the value of a loans that are newly restructured. The currently limit for provisioning such loans is 2 per cent.

The new guidelines are based on the recommendations of the working committee headed by RBI executive director B Mahapatra.