Categories: Business

NBFC seek RBI nod for one-time restructuring of all loans



new Delhi. Considering the current state of the corona virus, non-banking financial companies (NBFCs) have requested the Reserve Bank of India to allow them one-time restructuring by March 2021 for all their borrowers. The NBFC says that due to the ongoing lockdown due to the corona virus epidemic, financial resources are strapped to all their borrowers. The NBFC has also sought to extend the ban on installment payments from the Reserve Bank. Along with this, it has also asked to provide relief in additional financing under the rules for provision of loan in lieu and refinance facility through Small Industries Development Bank of India and National Bank for Agriculture and Rural Development (NABARD). All these suggestions were given in the meeting of the NBFC with the Reserve Bank on Monday. This information has been given by the Finance Industry Development Council (FIDC), an organization representing NBFCs.

This association of NBFC industry says that cash flow of all its customers has been hindered. Their cash transaction cycle has gone awry. The biggest problem has been faced by transport operators, contractors and Micro, Small and Medium Enterprises (MSME) sector. In a statement issued here, FIDC said that in view of our clients' expectation of cash flow, whether to revise the loan repayment timetable or to extend the loan period or restructuring the equated monthly installments, affect asset classification by March 2021 One-time restructuring facilities should be provided for all loans without debt. The Reserve Bank currently permits a one-time restructuring of existing loans of banks and NBFCs to MSMEs by December 2020. NBFC believes that once restructuring this facility should be extended to all other borrowers also. FIDC has said that there is some relief to the borrowers due to the exemption from the three-month installment, but from the fourth month onwards, it does not appear that they will start paying their installment interest.

This post was published on May 5, 2020 7:11 pm

Content Team

Recent Posts

Yamaha Motor India introduced special loan scheme for those working on the front in Kovid-19 epidemic

Photo: GOOGLE Yamaha Motor India announces spl finance scheme for frontline COVID-19 warriors new Delhi. Yamaha Motor India (YMI) Company…

Suzlon's losses more than doubled to Rs 834.22 crore in fourth quarter, CEO resigns

Photo: GOOGLE Suzlon loss widens to Rs 834.22 cr in March quarter new Delhi. The integrated net loss of wind…

Lockdown Impact: Tea production decreased by 54 percent in April, yields 3.90 crore kg

Photo: GOOGLE Lockdown impact: Tea production down 54 per cent in April new Delhi. According to Tea Board data, India's…