Loan Repayment Limit extended by RBI: Keeping in view the current situation in the economy owing to financial crunch faced by the masses as a result of demonetisation of old notes, the Reserve Bank of India has extended the limit for the repayment of housing, car, farm and other loans worth up to Rs 1 crore by 60 days.
Loan Repayment Limit extended by RBI owing to financial crunch due to demonetisation
“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…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.”
-said Reserve Bank of India in the statement
The RBI further added that it should be noted by the banks that this would not mean any restructuring of the loans. This provision only extends for the short term.
This would be applicable to the loans the due date of payment of which was from November 1 to December 31 for the entities holding a capital account in the concerned bank.
The 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.”
