RBI announces loan restructuring window for corporates

The Reserve Bank of India (RBI) has announced a loan restructuring window for corporates following demands from bankers and industry. RBI Governor Shaktikanta Das made the announcement yesterday.

Last week, Finance Minister Nirmala Sitharaman had said that the government is working with RBI on the need for restructuring of loans to help the industry tide over the impact of Covid 19.

In February, the RBI had decided to extend the benefit of one time restructuring without an asset



classification downgrade to standard accounts of GST registered micro, small and medium enterprises that were in default on January 1 this year in line with the budget announcement.

Mr Das said that stressed MSME borrowers would be eligible for restructuring of debt if their accounts were classified standard. The governor also raised the Loan to value ratio against gold to 90 percent from current 75 percent to mitigate Covid 19 impact on households.