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Friday, January 24, 2025 | 12:19 PM ISTEN Hindi

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Five wise men and the new window for loan recast

To make the loan restructuring scheme a success, the norms should be dynamic. They must be reviewed every quarter, keeping in mind how the economic scenario evolves

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Tamal Bandyopadhyay
None could miss the collective sigh of relief from the bankers’ community on the Reserve Bank of India’s (RBI) decision to open a restructuring window for stressed loans. Those accounts, which had been in default for not more than 30 days as on March 1, 2020, can be restructured if the borrowers are unable to service them because of their businesses being affected by the Covid-19 pandemic. The loans can be restructured, among others, by funding interest, converting part of debt into equity and giving the borrowers more time to pay up.

The banks must disclose such recast and set aside
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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