{"id":18487,"date":"2020-08-30T11:35:20","date_gmt":"2020-08-30T11:35:20","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=18487"},"modified":"2020-08-30T11:35:20","modified_gmt":"2020-08-30T11:35:20","slug":"fm-nirmala-sitharaman-to-meet-banks-nbfcs-to-review-resolution-framework-for-covid-stress-in-loans","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=18487","title":{"rendered":"FM Nirmala Sitharaman to meet banks, NBFCs to review resolution framework for Covid stress in loans"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"article-image\">\n<figure><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-2022407 size-full\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/nirmala-sitharaman.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-2022407 size-full\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/nirmala-sitharaman.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2022407 size-full\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/nirmala-sitharaman.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2020\/07\/nirmala-sitharaman.jpg 660w, https:\/\/images.financialexpress.com\/2020\/07\/nirmala-sitharaman-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/07\/nirmala-sitharaman-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/07\/nirmala-sitharaman-401x267.jpg 401w, https:\/\/images.financialexpress.com\/2020\/07\/nirmala-sitharaman-440x293.jpg 440w, https:\/\/images.financialexpress.com\/2020\/07\/nirmala-sitharaman-80x54.jpg 80w, https:\/\/images.financialexpress.com\/2020\/07\/nirmala-sitharaman-313x209.jpg 313w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><\/noscript><\/noscript><span class=\"article-caption\">FM Sitharaman will meet the top management of scheduled commercial banks and non-banking financial companies on Thursday.<\/span><\/figure>\n<\/div>\n<p>Finance Minister Nirmala Sitharaman will review the implementation of the resolution framework for Covid related stress in bank loans. The minister will meet the top management of scheduled commercial banks (SCBs) and non-banking financial companies (NBFCs) this Thursday, 3rd September 2020, the Finance Ministry said in a statement on Sunday. The review will be around enabling businesses and households to avail the framework on the basis of viability. It would also focus on steps required including finalising bank policies, identifying borrowers, and discussing issues that need to be addressed to ensure smooth and speedy implementation.<\/p>\n<p>The Reserve Bank of India (<a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/tag\/rbi\/\" rel=\"noopener noreferrer\">RBI<\/a>) had earlier this month allowed banks a one-time window to restructure loans recast to help limit the increase in bad loans. The resolution framework for Covid related stress in bank loans has been set-up under the June 7, 2019 rules by RBI to allow banks to recover the amount without classifying the loans as non-performing assets. According to a report by India Ratings, up to Rs 8.4 lakh crore worth bank loans may get restructured under the resolution framework. Nearly 60 per cent of the overall loans, which will be restructured, were susceptible to turn into NPAs post-lockdown in the absence of restructuring.<\/p>\n<p><strong>Also read:\u00a0<a href=\"https:\/\/www.financialexpress.com\/economy\/gst-shortfall-centres-formula-signals-states-to-take-hit-from-covid\/2069270\/\">GST shortfall: Centre\u2019s formula signals states to take hit from\u00a0Covid<\/a><\/strong><\/p>\n<p>The Reserve Bank of India, however, may not extend the moratorium on bank loan repayment beyond August 31 as it could impact the credit behaviour of borrowers instead of solving challenges they faced due to COVID, PTI reported citing sources. The central bank had announced a moratorium on repayment of debt for six months from March 1, 2020 onwards to support businesses and individuals overcome financial challenges in running their businesses. The six-month duration would end on August 31. Multiple bankers including HDFC\u2019s Deepak Parekh and\u00a0Uday Kotak from <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/kotak-mahindra-bank-ltd-stock-price\/\" rel=\"noopener noreferrer\">Kotak Mahindra Bank<\/a>\u00a0had asked Shaktikanta Das not to extend the moratorium period as borrowers are taking undue advantage of the relief.<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/s-p-bse-sensex-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">BSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nifty-50-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">NSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/investing-abroad\/\" target=\"_blank\" rel=\"noopener noreferrer\">US Market<\/a> and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\"https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\"https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<p class=\"telegram-text\"><img loading=\"lazy\" decoding=\"async\" class=\"telegrma_img\" src=\"https:\/\/images.financialexpress.com\/2020\/04\/telegram.png\" alt=\"\" width=\"24\" height=\"24\" style=\"margin: 0px 5px 4px 0px; float: left;\"\/>Financial Express is now on Telegram. <a href=\"https:\/\/t.me\/TheFinancialExpressOnline\" target=\"_blank\" rel=\"noopener noreferrer\">Click here to join our channel<\/a> and stay updated with the latest Biz news and updates.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\\\"https:\/\/www.financialexpress.com\/industry\/banking-finance\/fm-nirmala-sitharaman-to-meet-banks-nbfcs-to-review-resolution-framework-for-covid-stress-in-loans\/2069579\/\\\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>FM Sitharaman will meet the top management of scheduled commercial banks and non-banking financial companies on Thursday. Finance Minister Nirmala Sitharaman will review the implementation of the resolution framework for Covid related stress in bank loans. The minister will meet the top management of scheduled commercial banks (SCBs) and non-banking [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":18488,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-18487","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/08\/nirmala-sitharaman.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/18487","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18487"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/18487\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/18488"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}