Freeze asset quality norms to help borrowers, says RBI director Marathe

In a letter to PM Narendra Modi, RBI director said the lockdown, imposed to contain spread of Covid-19, and the earlier slowdown have disrupted operations of manufacturing units

Norms for asset quality and provisioning should be kept on hold for the last financial year to support banks as they the help the country during a three-week lockdown for the coronavirus, Reserve Bank of India director Satish Marathe has said.

Marathe, in a letter to Prime Minister Narendra Modi, said the lockdown and the economic slowdown before it have disrupted manufacturing units and crippled supply chains of all businesses.

As a part of package to revive businesses, rules relating to downgrading of borrower accounts, reporting to credit information companies should be suspended for FY20, said Marathe as industries and