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RBI excludes 90 days moratorium period for NPAs classification

RBI excludes 90-days moratorium period for NPAs classification

RBI excludes 90-days moratorium period for NPAs classification
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By CNBC-TV18 Apr 17, 2020 11:45:59 AM IST (Updated)

The Reserve Bank of India (RBI) on Friday allowed the 90-day moratorium period to be excluded from the classification of non-performing assets (NPAs).

The Reserve Bank of India (RBI) on Friday allowed the 90-day moratorium period to be excluded from the classification of non-performing assets (NPAs).

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“Due to the challenges of resolutions of accounts, period of resolution will be increased by (further) 90 days. Extension of resolution timeline for large accounts under default, additional provisioning of 20 percent is required for not implementing resolution in 180 days,” RBI Governor Shaktikanta Das said.
On March 27, the central bank had announced a three-month moratorium on term loans whose installments were due between March 1 and May 31.
Scheduled commercial banks and other financial institutions are to make additional 20 percent provision. Relaxing additional 20 percent will be provisioned under June 7 circular.
Non-banking finance companies (NBFCs) can grant relaxed NPA classification to their borrowers, Das added.
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