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Last Updated : Apr 17, 2020 12:23 PM IST | Source:

Moratorium period excluded from NPA classification: RBI Governor Shaktikanta Das

On March 27, the RBI had announced a three-month moratorium on term loans repayments of which were due between March 1 and May 31.

Reserve Bank of India (RBI) Governor Shaktikanta Das on April 17 said the moratorium period will be excluded from the classification of non-performing assets (NPAs).

Loan repayments overdue for over 90 days are classified as NPAs, according to the RBI's norms.

Follow LIVE coverage of the RBI Governor's press conference here


Non-banking finance companies (NBFCs) can grant relaxed NPA classification to their borrowers, Das added.

Also read: RBI Governor Shaktikanta Das: Liquidity coverage ratio of banks being brought down to 80%

"NBFCs have flexibility under the prescribed accounting standards to consider such relief to their borrowers," the RBI Governor said.

Banks are instructed to maintain additional provisioning of 10 percent on standstill accounts.

On March 27, the central bank had announced a three-month moratorium on term loans whose installments were due between March 1 and May 31.

The moratorium is intended to provide borrowers relief during the nationwide lockdown.

"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 Governor said in his statement on April 17.

Das also announced a 25 basis points cut of the reverse repo rate, lowering it to 3.75 percent.

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First Published on Apr 17, 2020 10:46 am
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