RBI extends timeline by six months for NBFC to adhere new NPA recognition norms

Mumbai: The Reserve Bank of India yesterday extended the timeline by six months for Non Banking Financial Companies to adhere to the new NPA recognition norms.

Earlier the regulator had set March 31 deadline for non-bank lenders to upgrade NPAs only after all arrears and principal dues are



paid.

It said that NBFCs will have time till September 30 to put in place the necessary systems to implement this provision.

The RBI also clarified that loans classified as NPA will be upgraded to standard category only if all dues are paid.