News & Updates- Economy
RBI Governor announces COVID-19 relief measures under Restructuring Resolution Framework 2.0
The restructuring under the proposed framework can be invoked up to September 30, 2021, and shall have to be implemented within 90 days of invocation.
Dt. 5th May 2021
The Reserve Bank of India (RBI) announced fresh restructuring resolutions for individuals, small businesses and Micro, Small and Medium Enterprises (MSME) borrowers who have an aggregate exposure of upto Rs 25 crores.
The borrowers who have not availed restructuring under any of the earlier restructuring frameworks (including under the Resolution Framework 1.0 dated August 6, 2020), and who were classified as ‘Standard’ as on March 31, 2021, shall be eligible to be considered under Restructuring Resolution Framework 2.0.
“Those availing resolution 1.0 can have residual tenure extended to two years. Lenders can review working capital sanction limits for those availing 1.0,” RBI Governor Shaktikanta Das said during the unscheduled announcement.
Further, the restructuring under the proposed framework can be invoked until September 30 and shall have to be implemented within 90 days of invocation.
“In respect of individual borrowers and small businesses who have availed restructuring of their loans under Resolution Framework 1.0, where the resolution plan permitted a moratorium of less than two years, lending institutions are being permitted to use this window to modify such plans to the extent of increasing the period of moratorium and/or extending the residual tenor up to a total of 2 years. Other conditions will remain the same,” RBI said.
Courtesy- www.moneycontrol.com
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