RBI cleared a loan restructuring scheme for borrowers in the pandemic

In its monetary policy review, the RBI gave the green signal to a loan restructuring scheme for stressed borrowers.

Daily Current Affairs Quiz 2020

Key-Points

A special window providing one-time loan restructuring to companies and individuals, it will provide relief specifically to those impacted by the Covid-19 pandemic.

The biggest impact will be that banks will be able to check the rise in non-performing assets (NPAs) to a great extent.

Only those companies and individuals whose loans accounts are in default for not more than 30 days as on March 1, 2020, are eligible for one-time restructuring. For corporate borrowers, banks can invoke a resolution plan till December 31, 2020 and implement it till June 30, 2021.

The one-time restructuring window is available across sectors.

Companies that were already in default for more than 30 days as on March 1, however, cannot avail this facility.