INSUBCONTINENT EXCLUSIVE:
The decision was made in RBI's policy review meetingThe Reserve Bank of India (RBI) on Thursday extended the provision for loan
restructuring of small businesses
The central bank, at its bi-monthly monetary policy committee (MPC) meeting extended the deadline for restructuring of loans of micro, small
However the restructuring provision will be available only to MSMEs that were in default but were 'standard' in March, this year
Covid-19 continuing to disrupt normal functioning and cash flows, the stress in the MSME sector has got accentuated, warranting further
Accordingly, it has been decided that stressed MSME borrowers will be made eligible for restructuring their debt under the existing
framework, provided their accounts with the concerned lender were classified as standard as on March 1, 2020
This restructuring will have to be implemented by March 31, 2021," RBI governor Shaktikanta Das said, while making the announcement.The
Finance Minister Nirmala Sitharaman had said last week that the government was working with the RBI on the industry's need for restructuring
of loans to absorb the adverse impact of Covid-19 pandemic.
