RBI relaxes NPA norms for small borrowers
The Reserve Bank of India (RBI) relaxed rules for classifying bad loans (Non-Performing Assets) for small borrowers.The apex bank stated that the relaxation
Mumbai: The Reserve Bank of India (RBI) relaxed rules for classifying bad loans (Non-Performing Assets) for small borrowers. The apex bank stated that the relaxation will apply to dues payable between November 1 and December 31.
The bank said, “The borrowers may need more time to repay their loan dues after the government withdrew higher-value banknotes.”
Banks and other financiers will get an additional 60 days for recognising certain loans of up to 10 million rupees as substandard, the RBI said in a notification.