Reserve Bank tries to reduce NPA burden for lenders in coronavirus crisis

From being classified as NPAs after 90 days of overdue, the central bank raised the period to 180 days

The regulatory measures announced by the Reserve Bank of India (RBI) on Friday will help keep a check on a possible surge in non-performing assets (NPAs) in the books of lenders and assist companies in borrowing more from the banking system at a time when economic activities are about to restart in a phased manner.

“It has been decided that in respect of all accounts for which lending institutions decide to grant moratorium or deferment, and which were standard as on March 1, 2020, the 90-day NPA norm shall exclude the moratorium period, i.e. there would be an asset classification