RBI denies banks' request for stay on asset classification norms amid COVID-19 Crisis
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The Reserve Bank of India (RBI) has denied a request from banks to put a stay on the asset classification norms, according to a report by The Economic Times.
The central bank's instruction could hurt companies hoping to avoid being labelled as defaulters amid the coronavirus outbreak.
Companies that were already in default before March 1 are not eligible for forbearance, the RBI said in an email to the Indian Banks’ Association (IBA). In India, the spike in COVID-19 cases began after March 1.
“If a borrower has been in default even before March 1, 2020, such a default cannot be said to be as a result of the economic fallout of the pandemic,” the RBI said in the email seen by The Economic Times. #casansaar (Source - MoneyControl, Economic Times)
The central bank's instruction could hurt companies hoping to avoid being labelled as defaulters amid the coronavirus outbreak.
Companies that were already in default before March 1 are not eligible for forbearance, the RBI said in an email to the Indian Banks’ Association (IBA). In India, the spike in COVID-19 cases began after March 1.
“If a borrower has been in default even before March 1, 2020, such a default cannot be said to be as a result of the economic fallout of the pandemic,” the RBI said in the email seen by The Economic Times. #casansaar (Source - MoneyControl, Economic Times)
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