Individuals, small business and micro, small and medium enterprises (MSMEs) having exposure of up to ₹ 25 crores, who did not avail restructuring earlier and where loans were classified as standard as of March 31, 2021, will be eligible for loan restructuring in the second round.
Amid rising COVID-19 cases in India and the need for financial aid for businesses, RBI Governor Shaktikanta Das in his address on Wednesday unveiled liquidity support measures and re-opened its one-time loan restructuring plan for individuals and small businesses affected by the state-wise lockdowns amid the second wave.
“Resurgence of Covid-19 pandemic in India in recent weeks and the associated containment measures adopted at local and regional levels have created new uncertainties and impacted the nascent economic revival that was taking shape. In this environment, the most vulnerable category of borrowers are individual borrowers, small businesses, and MSMEs,” RBI Governor Shaktikanta Das said in his speech.
Individuals, small business and micro, small and medium enterprises (MSMEs) having exposure of up to ₹ 25 crores, who did not avail restructuring earlier and where loans were classified as standard as of March 31, 2021, will be eligible for loan restructuring in the second round.
Restructuring under the proposed framework may be invoked up to September 30 and shall have to be implemented within 90 days thereafter, the RBI governor said.
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As per NDTV, with respect to individual borrowers and small businesses who availed restructuring of their loans under the Resolution Framework 1.0, where the resolution plan permitted a moratorium of fewer than two years, lending institutions are being permitted to use this window to modify such plans to the extent of increasing the period of moratorium or extending the tenure up to a total of two years.
The Central Bank also announced that it’ll open an on-tap liquidity window of ₹50,000 crores with tenors of up to three years at the repo rate till March 31, 2022. Under the scheme, banks can provide new lending support to all emergency medical services.
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