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RBI Allows One-Time Restructuring Of Loans: Here's What It Means For Borrowers


The Reserve Bank of India in its MPC policy decision has today allowed one-time restructuring of corporate loans without putting them under the NPA or non-performing assets category.

For the purpose, an expert committee led by veteran banker KV Kamath will be constituted which will suggest ways on its implementation, said RBI governor Shaktikanta Das.

RBI Allows One-Time Restructuring Of Loans: What It Means For Borrowers?

"We have decided to provide a window for restructuring of loans without downgrading them according to the June 7 2019 circular. Care will be taken that past experience of restructuring is not repeated and enough safeguards will be followed," Das said in his statement.

"Such a restructuring will not invite a downgrade in the asset classification as it does currently. Stressed MSME borrowers will also be allowed to restructure their debt provided they were classified as standard on March 31," added RBI Governor. The restructuring will include companies based on ownership as well as personal loans, Das said.

Loans given out to micro and small enterprises will also be restructured, Das said.

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