The Reserve Bank of India on Monday provided an extra 60-day period to repay housing, car, farm and other loans in view of the demonetisation move taken by the Centre, PTI reported. The top bank’s notification said the provision was applicable for loans payable between November 1 and December 31.
Entities running working capital accounts with the sanctioned limit of Rs 1 crore or less are eligible for the relaxation. The bank has included term loans in the same category. “It has been decided to provide an additional 60 days beyond what is applicable for the concerned regulated entity for recognition of a loan account as substandard,” said the statement from RBI.
The Central bank relaxation is also extended on loans sanctioned by banks to non-banking financial company, micro finance institutions, housing finance companies, and by the state cooperative banks to district central cooperative banks, The Hindu reported.
Banks employees have been working overtime to handle the pressure of exchanging old notes or hand out money to the vast majority of the population, affecting regular bank business – giving loans, assessing credit-worthiness and clearing cheques.
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