The Reserve Bank of India 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.Individuals, small business and micro, small and medium enterprises (MSMEs) having exposure of up to Rs 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.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.Withrespect 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.In a separate development, the RBI Governor said the central bank will provide a term-liquidity facility of Rs 50,000 crore to ease access of funds for emergency medical services.Shaktikanta Das expressed faith in India's ability to come out of Covid-19 crisis and added that RBI continues to monitor the situation closely.
India has already crossed the 2-crore mark in total Covid infections caseload, which is the second highest globally -- just behind the United States and ahead of Brazil.
India is fighting a ferocious rise in coronavirus cases and we have to marshall all our resources with renewed vigour, the Governor emphasized.