Reserve Bank tries to reduce NPA burden for lenders in coronavirus crisis
.The Reserve Bank of India (RBI) on Friday
announced additional set of regulatory measures to reduce the burden of debt
servicing due to disruptions caused by the coronavirus (Covid-19)
pandemic, including an asset classification standstill for accounts that avail
a moratorium between March 1 and May 31.
Such
accounts will, therefore, be classified as non-performing assets from 180 days
of overdue, rather than the current norm of 90 days, according to a set of
measures announced by RBI Governor Shaktikanta Das on Friday.
“Economic
activity has come to a standstill during the period of the lockdown, with
consequential lingering effects which have unambiguously affected the cash
flows of households and businesses,” the RBI said.
On
March 27, the RBI had permitted lending institutions in India to grant a
moratorium of three months on payment of current dues falling between March 1
and May 31, 2020. Read More
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