The Reserve Bank of India on Tuesday, 1 January, announced a one-time restructuring scheme for certain small borrowers, applicable on loans not exceeding Rs 25 crore and can be implemented by banks and non-bank lenders.
Under the new scheme, accounts in the micro, small and medium enterprises segment which are in default but are still standard as on 1 January, can be restructured once, without any downgrade on their asset classification, the central bank said in a statement.
“The restructuring has to be implemented by 31 March 2020,” the statement read. “A provision of five percent in addition to the provisions already held, shall be made in respect of accounts restructured under this scheme.”
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