RBI<\/a>, the report said. After RBI Governor Shaktikanta Das announced the one-time loan restructuring facility earlier this month, Finance Minister Nirmala Sitharaman is likely to take up the issue in the forthcoming meeting with the heads of banks and NBFCs.<\/span><\/p>\nThe proposed loan restructuring will enable banks to extend the term of retail loans by two years without increasing customers\u2019 EMI amounts (equated monthly installments). The banks are in the process of identifying the retail loan accounts which may require the restructuring facility, a PSU bank employee told the paper, adding that the borrowers will be given an option based on the bank frameworks and RBI rules.<\/span><\/p>\nAt present, loan accounts that are in default for not more than 30 days as on 1 March 2020 are eligible for restructuring. RBI\u2019s circular on Resolution Framework for Covid-19-related Stress also underlined that the banks may look to grant additional moratorium of two years. The resolution plans may include rescheduling of payments, conversion of any interest accrued, or to be accrued, into another credit facility, or, granting of moratorium, based on an assessment of income streams of the borrower for up to two years. Consequently, the overall tenure of the loan may also get modified.<\/span><\/p>\nShaktikanta Das had asked the banks to start the process on their own and prepare the resolution plan by the end of this month. He had added that the bank moratorium was a temporary solution to respond to coronavirus lockdown but the resolution framework is a permanent solution. Meanwhile, the Ministry of Finance has said that the review will focus on enabling businesses and households to avail the revival framework on the basis of viability, necessary steps like finalising bank policies, and identifying borrowers. Discussing issues that require addressing for smooth and speedy implementation is also on the government\u2019s cards.<\/span><\/p>\n
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