In the wake of demonetisation drive in the country, Reserve Bank has relaxed certain asset classification and provisioning norms in certain cases.
RBI has decided to allow banks 60 more days for recognition of loans as standard in certain cases. The revised norm is applicable for loans payable between November 1 and December 31.
Small borrowers who have been unable to pay back loans will be given additional two months to pay back dues to banks.
This is for loans sanctioned by banks to NBFCs, HFCs and PACs. The extension is applicable to running working capital accounts with sanctioned limit of under Rs 1 crore and also, on term loans of under Rs 1 crore including agriculture and housing loans.