are in the process of getting a board-approved restructuring framework in line with the RBI's framework and eligibility defined by the central bank in its notification on August 6.
Besides assessing the preparedness of banks
on the debt recast, sources said, the meeting will also review the progress of various schemes announced under the Rs 20.97 lakh crore Aatmanirbhar Bharat Abhiyaan.
The progress of Emergency Credit Line Guarantee Scheme (ECLGS) and Credit Guarantee Scheme for Subordinate Debt, among others, will be reviewed in the meeting, sources said.
"The review (meeting) will focus on enabling businesses and households to avail of the revival framework on the basis of viability, necessary steps like finalising bank policies and identifying borrowers, and discussing issues that require addressing for smooth and speedy implementation," the Finance
Ministry had said earlier this week.
minister will review the implementation of the resolution framework for Covid-19 related stress in bank loans on Thursday with the top management of scheduled commercial banks and non-banking financial companies (NBFCs), it had said.
Restructuring benefit can be availed by those whose account was standard on March 1 and defaults should not be over 30 days.
Besides, the K V Kamath committee is working on recommendations on financial parameters like debt service coverage ratio, debt-equity ratio post-resolution and interest coverage ratio for recasting corporate loans.
Its recommendations will be notified within 30 days of setting up of the panel, which means the notification should be out by September 6.
The resolution plans to be implemented under the framework may include conversion of any interest accrued, or to be accrued, into another credit facility, or granting of moratorium and/or rescheduling of repayments, based on an assessment of income streams of the borrower, up to two years.
While the resolution under this framework can be invoked till December 31, 2020, the lending institutions have been encouraged to strive for early invocation in eligible cases, particularly for personal loans.
Last month, state-owned Punjab National Bank had said it expects to restructure loans worth about Rs 40,000 crore as per the RBI-approved guidelines, scheduled to be out soon.
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