In further relief to people hit by demonetisation, the Reserve Bank of India has relaxed the norms for bad loan classification for small scale borrowers by giving an additional 30 days to repay the loan.
RBI said that lenders can now wait for 90 more days before classifying a loan as a non-performing asset (NPA). In a circular to all lenders, the RBI said that it has decided to provide 30 days, in addition to the 60 days of relief provided in November post-demonetisation, Times of India reported.
Those who are eligible for the relaxation will be the borrowers running working capital account or crop loans with any bank where the sanctioned limit is Rs 1 crore or less. Loans for business purposes, originally sanctioned amount less than 1 crore, are also applicable for the relaxation.
The relaxation will apply for banks, non-banking finance companies, microfinance companies and housing finance institutions.
The special dispensation will apply to dues payable between November 1, 2016 and December 31, 2016.
