The Reserve Bank of India (RBI) has directed to public sector banks to accept repayment of loan under the Prime Minister's Rojgar Yogna (PMRY) scheme.
This was not possible as per the earlier guidelines on the same scheme. This has been indicated by the central bank to the chairmen of all the public sector banks.
The RBI directive to all the banks said that in case if the borrowers are in position to repay the loan earlier than the repayment schedule fixed by the bank, the repayment under the PMRY loan may be rescheduled with a minimum period of three years at the discretion of branch manager.
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RBI has said that this measure is taken so that the borrowers are able to receive an early credit of subsidiary and is able to avail of additional loan facility if desired.
The apex banks has also said stated that this instruction supersede the existing guidelines of the scheme, where the borrower could not repay the loan amount before the period fixed by the bank under the repayment scheme.