MUMBAI: Taking cognisance into the continuing shortage of currency after demonetisation in the country, the Reserve Bank of India (RBI), on Wednesday provided a breather for borrowers saddled with the cash crunch in the country, giving additional 30 days to repay their dues on certain categories of loans.
The categories of loans including repayment of housing, car, farm and other loans worth up to Rs one crore, as per bank notification stated.
With Wednesday declaration, borrowers together get 90 days breather from getting the account classified under non-performing asset (NPA) category as earlier on November 21, apex bank provided relief to small borrowers by offering them an additional 60 days to make good on their dues.
The above dispensation will apply to dues payable between November 1, and December 31, 2016, it said. Dues payable after January 1, 2017 will be covered by the instructions for the respective entities.
The measure is aimed at preventing a spike in bad loans on account of the government’s decision to withdraw Rs 500 and Rs 1000 notes, which was announced on November 8, and resulted in the scrapping of 86 percent of the currency in circulation.
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