NEW DELHI: Finance Minister Nirmala Sitharaman has planned to conduct a review meeting with heads of banks and NBFC (Non-Banking Financial Company) for expedite and immediate execution of the one-time debt recast for resolution of COVID-19 related issues in bank loans, which will be held on Thursday. The Reserve Bank of India (RBI) last month granted one-time reshaping of both corporate and retail loans without being categorized as a non-performing asset (NPA).
In line with the RBI’s framework and eligibility defined in its notification on August 6, banks are in the process of getting a board-approved restructuring framework.
“The review (meeting) will focus on enabling businesses and households to avail of the revival framework on the basis of viability, necessary steps like finalising bank policies and identifying borrowers, and discussing issues that require addressing for smooth and speedy implementation,” the Finance Ministry had said earlier this week.
Janet Elizabeth John@Samacharline