RBI’s Loan Recast Scheme
Part of: GS Prelims and Mains III – Economy and related issues; Banking
- RBI cleared a loan restructuring scheme for borrowers who are under stress because of the pandemic.
- Key sectors, such as micro, small and medium enterprises (MSMEs), hospitality, aviation, retail, real estate and auto, which are facing a liquidity crunch, will benefit from this scheme.
Do you know?
- Onetime loan restructuring will help soften the COVID19 pandemic’s impact on banks’ asset quality
- RBI’s relaxations under the Prudential Framework on Resolution of Stressed Assets will benefit borrowers in most categories