Banks want RBI to relax NPA norms for lockdown-stressed MSME sector

Topics Reserve Bank of India | Banks | RBI

Commercial banks have requested the Reserve Bank of India (RBI) to relax norms regarding the classification of non-performing loans for micro, medium and small enterprises (MSMEs), pointing to the stress the sector is facing due to lockdowns imposed by different state governments following the second wave of Covid-19.   Sources in the banking industry said a request was made to the regulator to extend the non-performing asset (NPA) classification norms for MSME borrowers to 180 days as compared to 90 days now. At present, a loan becomes substandard – the first category of NPA &nda.....

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