Mumbai: To provide support to small businesses hit by the second coronavirus wave, banks have initiated the process of restructuring of loans up to Rs 25 crore in line with the Covid-19 relief measures announced by the Reserve Bank earlier this month.
Many lending institutions have got board approval for the resolution framework and eligible borrowers are being contacted. For example, Bank of India has sent messages to its eligible customers to submit their willingness to debt recast online.
“In these trying times, we offer you a helping hand by extending relief as per RBI Resolution Framework 2.0 dated May 5, 2021. If you are under financial stress caused by the Covid second wave, you may opt for restructuring of your account,” the message said.
Another public sector lender Punjab & Sind Bank said its debt recast plan as specified by the RBI has been approved by the board.
“We will be reaching out to our customers including through BCs…we will get a fair idea about how many customers want to avail the restructuring in the next few days or so,” Punjab & Sind Bank managing director S Krishnan said.
SBI Chairman Dinesh Kumar Khara said for the resolution framework 2.0 announced by the RBI on May 5, all public sector banks have come out with a formulated templated approach for restructuring of loans to individuals, small businesses, MSMEs up to Rs 25 crore.
“The idea behind this is that those who are involved in the implementation of the resolution framework, they should not have any hardship in terms of any implementation,” Khara added.