Resolution framework -2.0: Enhancement of limits offered to individuals and small businesses

RBI on June 04, 2021 permitted lending institutions to offer a limited window to individual borrowers and small businesses to implement resolution plans in respect of their credit exposures while classifying the same as Standard upon implementation of the resolution plan subject to certain conditions under the framework. RBI in its circular DOR.STR.REC.11/21.04.048/2021-22 on “Resolution…

RBI provides more credit for intensive sectors like restaurants, hotels, tourism travels, and others

The Reserve Bank of India (RBI) has decided to open an “On-tap Liquidity Window for Contact-intensive Sectors” aggregating Rs15000 crores till March 31, 2022. These sectors include hotels and restaurants, tourism, rent-a-car service providers. In the Statement on Developmental and Regulatory Policies announced by RBI on 04.06.2021, RBI Governor Shaktikanta Das announced that “In order…

RBI relaxes bad loans provisioning rules for banks, permits 100% utilization of floating provisions

The Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday announced that banks are allowed to utilise100 per cent of floating provisions/counter-cyclical provisioning buffer for making specific provisions for non-performing assets. RBI in its circular dated May 5, 2021 stated that “In order to mitigate the adverse impact of COVID 19 related stress on…

RBI announces Resolution Framework 2.0 for COVID Related Stressed Assets

RBI on Wednesday (5th May) announced Resolution Framework 2.0 targeting individual, small businesses and MSME borrowers. In terms of RBI’s Febraury 5th circular, Scheduled Commercial Banks were allowed to deduct the amount equivalent to credit disbursed to new MSME borrowers from their Net Demand and Time Liabilities (NDTL) for calculation of the Cash Reserve Ratio…