The Reserve Bank of India reopened a one-time debt restructuring scheme as the economy braces for the impact of a renewed surge in Covid-19 cases. Retail borrowers and small businesses will be permitted to recast their loans, without being downgraded to non performing category, under the scheme.
- The one-time restructuring scheme will be available for borrowers with aggregate outstanding dues of up to Rs 25 crore.
- Only accounts which are classified as standard as of March 31, 2021 can be restructured.
- Borrowers who have received relief under previous restructuring schemes, including that announced last year, would not be eligible.
- As part of the scheme, lenders can extend the tenor of the loan by up to two years and also offer a morator…
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