AMN / WEB DESK
Announcing a string of relief measures as concerns mount over the economic impact of the second coronavirus wave, the Reserve Bank of India (RBI) governor Shaktikanta Das said today that the borrowers who opted for loan restructuring in 2020 can be given two years to pay back.
He also allowed the restructuring of loans for individual and small businesses and MSME borrowers who didn’t avail the facility in the previous round.
Reserve Bank of India Governor also announced multiple relief measures. The support largely centered around easing credit concerns for MSMEs, small businesses, and individuals. “Small businesses and financial entities at the grassroot level are bearing the biggest brunt of the second wave of infections. Against this backdrop and based on our continuing assessment of the macroeconomic situation and financial market conditions, we propose to take further measures,” Das said in his unscheduled address.
In order to incentivise credit flow to MSMEs, RBI in February this year had allowed scheduled commercial banks to deduct credit disbursed to new MSME borrowers from their net demand and time liabilities (NDTL) for calculation of the cash reserve ratio (CRR). Das, on Wednesday, extended this exemption, which is currently available for exposures up to Rs 25 lakh and for credit disbursed up to the fortnight ending October 1, 2021, till December 31, 2021 “order to further incentivise the inclusion of unbanked MSMEs into the banking system.”