Demonetisation: RBI gives borrowers additional 60 days to repay loans up to Rs 1 crore

The apex bank further said that all regulated financial institutions should note that this is a short-term deferment of classification as substandard due to delay in payment of dues arising during the period specified above and does not result in restructuring of the loans.

By: PTI | Mumbai | Updated: November 21, 2016 8:52 pm
RBI, Reserve Bank of India, IT dues, income tax dues, income tax, income tax india, income tax due, income tax due date, rbi income tax, business news, indian express, india news Term loans, whether business or personal, secured or otherwise, the original sanctioned amount of Rs 1 crore or less, on the books of any bank or any NBFC, including NBFC (MFI) would also get benefit of this relaxation.

In view of cash crunch being faced by borrowers, the RBI on Monday provided additional 60 days for repayment of housing, car, farm and other loans worth up to Rs 1 crore. This is applicable to loans payable between November 1 and December 31, the RBI said in a notification.

“… 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,” it said. The above relaxation is available to entities running working capital accounts with any bank with the sanctioned limit of Rs 1 crore or less.

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Term loans, whether business or personal, secured or otherwise, the original sanctioned amount of Rs 1 crore or less, on the books of any bank or any NBFC, including NBFC (MFI) would also get benefit of this relaxation. This will also include housing loans and agriculture loans, it said.

The apex bank further said that all regulated financial institutions should note that this is a short-term deferment of classification as substandard due to delay in payment of dues arising during the period specified above and does not result in restructuring of the loans.

“Dues payable before November 1 and after December 31, 2016, will be covered by the extant instruction for the respective regulated entity with regard to recognition of NPAs,” it said.

The demonetisation of higher value currency notes has affected normal banking activities including clearing of cheques. Besides, borrowers are unable to get payments from their creditors due to various restrictions including cash withdrawal limit of Rs 24,000 per week, limiting their options to repay their dues.

DHFL Chief Executive Officer Harshil Mehta said, “It is a welcome move by the RBI as many customers have expressed their inability to repay dues in time because of ongoing demonetisation drive.”

For many of them, EMIs are due in the first half of the month, so the relaxation will help keep account standard even when the payment is not received, he said.

Neither borrowers’ credit score is impacted negatively due to non-payment nor financial institutions have to make additional provisions for sub-standard account, he added.

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  1. D
    Dainik
    Nov 22, 2016 at 2:46 am
    Change Modi after changing Notes.
    Reply
    1. M
      MyTake
      Nov 21, 2016 at 9:41 pm
      Modi's answer to Vote Bank is Note Bank!
      Reply
      1. M
        MyTake
        Nov 21, 2016 at 11:13 pm
        It is amusing to see at last some of the crocodiles coming out of the woodwork to shed the tears! lt;br/gt;lt;br/gt;At least practicing is good which might lead to some real life behavior change!
        Reply
        1. A
          alam
          Nov 21, 2016 at 7:33 pm
          Small farmers are worst sufferers and one cannot blame entirely to govt since they are illiterate, mostly no bank account , and are unaware of the meaning demonetization and they account for 45 % out of 78 % total farmers that our own countries potion has.lt;br/gt;There aspects has to be considered and very hardly any news is seen on national level about these 45 % farmers that accounts for almost 55 crores of Indian potion.
          Reply
          1. A
            Amit
            Nov 21, 2016 at 10:31 pm
            Modi has no idea what he did and what will happen next with deterioting situation. Recovery from the harm caused by Noteban Politics could take 20 years minimum if sensible leader takes power in Delhi soon. Big Fish Modi backed by even biiger Fishes Adani, Ambani, Birla, Pawar, Mallya, Amit Shah, Lalit Modi, Shivraj Singh Chauhan, Vasundhar Raje are now eating up the wealth of 125 Crore Small Fishes.
            Reply
            1. A
              Anil Yeldi
              Nov 22, 2016 at 4:00 am
              @ Ashok S.RBI has taken good step Considering NBFC-MFI who are dealing their collection in cash only.NBFC-MFI having clients are poor people and that too in villages.People not having time to go for exchange because they dont want to loose their daily wages hence NBFV-MFI clients can pay their EMI's in old denomination and onward NBFC-MFI can pay their terms loans to Banks.
              Reply
              1. A
                ashok s
                Nov 22, 2016 at 12:12 am
                All joking. RBI , the banks, the nbfcs don't deal much in cash , when you borrow you give advance cheques or rtgs, or neft . a borrower hardly pays in cash
                Reply
                1. R
                  Raj
                  Nov 21, 2016 at 3:10 pm
                  I think this demonetization was a smokescreen, actual goal of the process is a mive cleanup of India's bad debt problem, where a huge write off may occur.
                  Reply
                  1. A
                    A. M.
                    Nov 21, 2016 at 4:53 pm
                    Kejriwal likho, feku mat likho.
                    Reply
                    1. M
                      madhav
                      Nov 21, 2016 at 2:17 pm
                      RBI, Please issue a notification that all Indians should be Minimum Graduate ( not fake )lt;br/gt;and should be able to handle all sort of gadgets. People who do not obey this notification with in a year can be allowed to leave this country, so that, we can become cashless and progressive. lt;br/gt;lt;br/gt;Just imagine, Robots working in agricultural fields, farm houses etc. and producing food for us, with out asking for a penny in return.
                      Reply
                      1. N
                        nikki
                        Nov 21, 2016 at 5:12 pm
                        Every single day Government comes with a new Idea how to get people in the loop.... We do understand Governments bad planning and execution of demonetization, you are so confused and you are panic and trying many things to settle the issues, It would have been good if you had taken some good advise.
                        Reply
                        1. N
                          nikki
                          Nov 21, 2016 at 5:16 pm
                          Indian soldiers are our Breath, they are our life line, they are our protecters and we need to respect that, and also the people who have lost lives due to Demonetization, it was not their fault it was Government fault, and Government are responsible for their deaths.
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                          1. M
                            Mannu
                            Nov 21, 2016 at 2:48 pm
                            Now that all of our cash is in banks, banks gave relief for 60 days. But for all other rich industrialists, the relief is for ever. Its so easy to bankcrupt India. Just create a compnay, get huge loans, move the cash overseas, cookup the books to show deliquency as NPA and bankcrupt India. Protected by the modi govt. Everyone is happy except the general potion.
                            Reply
                            1. V
                              Vijaya Varma
                              Nov 21, 2016 at 3:25 pm
                              The government’s resolve to eliminate black money will be successful only if government introduces an involuntary tax paying account to make banking services available for everyone, everything and everywhere. This involuntary tax paying account will eliminate black money completely without any trace of it in any form – physical currency, gold and real estate ets. This involuntary tax paying account will never generate black money once again. Study this account module from this link ---lt;br/gt;Involuntary_tax_paying_account
                              Reply
                              1. V
                                Vihari Naidu
                                Nov 21, 2016 at 1:17 pm
                                RBI, you are messing everything up. Wish you had a spine.
                                Reply
                                1. P
                                  profmamalakia
                                  Nov 21, 2016 at 9:03 pm
                                  If your life is stuck and you feel like you have done everything in your power to fix everything yet you continue to see your life ending, believe me there is something you can do about it because that’s the situation I used to live 2 months ago before I met this powerful Mama Anisha. My family was falling apart and nothing was working out, my husband left me with our kids for another woman saying I was cursed and all this happened after losing my job. There is nothing as bad as seeing your kids starving and you cannot do anything. When i saw people testifying about a very powerful spiritual lady i decided to give it a last try, i was so skeptical at first but i saw no other choice, when i went to her she performed a powerful spiritual prayer for me and in 14 days all my suffering came to the end so don’t sit back and start crying alone just thinking that may be its the end. Try Mama Anisha I know after performing her spiritual prayer for you everything will start to follow into place, need to boost your business, promotion at work, need children, man power, protection, solve health issues, wealth, fame etc. If you find yourself reading this message don't call it a chance but rather fate has guided your steps. Do not get angry after reading this, please understand not everyone is well like you. Do not hesitate to contact her. Do not hesitate to contact her. her number: 27718029317".
                                  Reply
                                  1. C
                                    chanemougam
                                    Nov 22, 2016 at 1:39 am
                                    How reserve bank permit of this activity without pre-caution to implement this scheme,now also there is a simple away allow every body to change 500 and 1000 till december as per announcement ,it is their headacqe those who are having without acountability so permit everybody with pan no as usual to pay in banks in their account directly , the business, public ,poorer not suffered, in jan dhan account above 1 lakh in savings account holder should give pan no while depositing above 20,000,Please take decision as usual allow 500,1000 concern person only handling in banks is must.and necessary. As usual ATM will work no hiding of money from public. ,
                                    Reply
                                    1. C
                                      chanemougam
                                      Nov 22, 2016 at 2:03 am
                                      prime Minister and president should take immediate decition demonetisation of this amount first they release as usual 500 ,1000 up to the period 25 December 2016, in mean time bank collect 500,1000 not release from bank side..new currency only relieve. ,then only we sort the issues from public, business people , 50, 100, changes are dumped by corruption people.every transaction under pan is must above Rs 20,000 transaction .situtation is worst nowadays without alternate money public quarrel every where ,consider in a honourble manner no one should suffer to take their own money under que every week .Ministers should know let them que in banks and spend money .then only they know the difficult of public facing.How ministerates andfamily without changing money in banks directly they spend can answer
                                      Reply
                                      1. R
                                        ranjini
                                        Nov 21, 2016 at 2:09 pm
                                        RBI, PLEASE do regulate ALL BANKS to make this DEMONETISATION to WORK. This is the ONLY CHANCE for "US, INIDIANS" to become CASH-BASED to DIGITAL ECONOMY. We will NOT get such open-minded GUT PM in the future. PLEASE WE REQUEST YOU. TAKE THIS CHANCE and DO THE BEST. I am READY to volunteer in this.
                                        Reply
                                        1. S
                                          sam
                                          Nov 22, 2016 at 3:00 am
                                          One day, instructions from Economic Secretary and on another, RBI. Are the people of India a confused lot ? Certainly not.
                                          Reply
                                          1. A
                                            anonymous
                                            Nov 21, 2016 at 4:10 pm
                                            A Futile Exercise of Modi Baba. It is ill-advised and Draconian, People Troubling baby of Modi Baba. All 3 years he has been doing things causing big problems in all spectrum of his administration- Opposition being suppressed, Minorities being discriminated, Judiciary being worked partial ( lots of judges look like BJP Activists especially, in Delhi), State Governments being toppled over, Deceitfulness is the order of the day, No Transparency. Under the term Democracy, this Govt is a Dictatorial Field, Rudderless Ship sailing with whimsical winds of/ under the Prime Minister Ministergt; This is another instance which is tyrannical and will prove disastrous at the end. Prime Minister has climbed down some by letting farmers use 500 denomination of bills but he needs to be fully on the ground if he has any regard for the people- he must make about turn and undo demonetization altogether.
                                            Reply
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