The Reserve Bank on Friday allowed non-banking financial companies (NBFCs) to restructure project loans and continue treating them as standard advances in cases where projects have not commenced due to external factors.
The move comes after the central bank last month permitted banks to recast infra project loans. “NBFCs may restructure loans subject to the extant prudential norms on restructuring of advances, by way of revision of DCCO (date of commencement of commercial operations)… and retain the ‘standard’ asset classification,” the apex bank said in a notification on Friday.
However, the regulator clarified that the facility can be used only in select scenarios. These include infra projects involving court cases, where a loan by an NBFC can be restructured for up to four years from the original DCCO.