RBI fields FaQs on loan recast, clears air over OTR, loan against property

Says outstanding debt on date of invocation will be eligible for restructuring under regulatory scheme for borrowers facing financial stress due to Covid-19

The Reserve Bank of India (RBI), in a frequently asked questions (FAQs) for one-time restructuring (OTR), said outstanding debt on the date of invocation can be restructured under the regulatory scheme for borrowers facing financial stress due to the Covid-19 pandemic. With the FAQs, the RBI addressed a volley of queries on operational issues.

The RBI’s circular on OTR on August 6 had stated that the reference date for the outstanding amount of debt that may be considered for resolution will be March 1, 2020.

Bankers said many changes occurred in about seven months, both for borrowers who opted for moratorium and