FM to review implementation of resolution framework for COVID-19 related stress in bank loans on Thursday

New Delhi: Union Minister for Finance and Corporate Affairs Nirmala Sitharaman will review with the top management of Scheduled Commercial Banks and NBFCs, the implementation of the resolution framework for COVID-19 related stress in bank loans on Thursday (September 3, 2020).

The review will focus on enabling businesses and households to avail of the revival framework on the basis of viability, necessary steps like finalising bank policies and identifying borrowers, and discussing issues that require addressing for smooth and speedy implementation, Ministry of Finance has said.

The Reserve Bank of India (RBI) had this month permitted one-time restructuring of both corporate and retail loans.

The benefits of restructuring benefit can be availed by those whose account was standard on March 1 and defaults should not be over 30 days.

Banks are in the process of getting a board-approved restructuring framework in line with RBI’s framework and eligibility defined by the central bank in its notification on August 6.