The Reserve Bank of India (RBI) might consider allowing a one-time loan restructuring scheme taking into account the severe impact of the COVID-19 crisis on the economy, according to people familiar with the development.
“The idea seems to be gaining ground considering that a large number of stressed cases are likely to come up in the COVID-19 economic scenario,” said a banking industry official who spoke on condition of anonymity.
According to the person quoted above, the one time restructuring scheme will cover all COVID-19 related stressed loans impacted mainly during the lockdown period.
This is likely to be discussed in the RBI board meeting scheduled for today. The government has been pushing for a one time loan recast facility from with RBI in view of the likely bad loan issues in the banking system. Both banking and non-banking companies too have been asking for this.