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COVID-19 crisis: RBI may agree to one-time loan restructuring scheme for stressed borrowers

If RBI permits this demand, this will be a big relief to NBFC borrowers since economic activities have slowed to a trickle on account of the prolonged lockdown.

June 26, 2020 / 12:55 PM IST
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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.