New Delhi: The Reserve Bank of India has re-opened its one-time loan restructuring plan for individuals and small businesses affected by the state-wise lockdowns amid the second wave of coronavirus pandemic that has hit India badly.
Who is eligible?
Individuals, small business and micro, small and medium enterprises (MSMEs) having exposure of up to ₹ 25 crore, who did not avail restructuring earlier and where loans were classified as standard as on March 31, 2021 will be eligible for loan restructuring in the second round.
What RBI governor said:
Restructuring under the proposed framework may be invoked up to up September 30 and shall have to be implemented within 90 days thereafter, Mr Das said.
“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 MSMSEs,” RBI Governor Shaktikanta Das said in a speech.
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 moratorium of less 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, Mr Das added.
