What is restructuring of loan by RBI?

The basic objective of restructuring is to preserve economic value of units, not evergreening of problem accounts. This can be achieved by banks and the borrowers only by careful assessment of the viability, quick detection of weaknesses in accounts and a time-bound implementation of restructuring packages.

What are the latest guidelines of RBI?

Rbi Guidelines

  • No More Pricing Caps On Micro-Finance Loans, Says RBI: Report.
  • RBI Bans Paytm Payments Bank From Taking On New Customers.
  • Awaiting Guidelines On SWIFT Transactions With Russian Entities: Punjab National Bank.
  • New RBI Rules on Online Card Transactions to Now Take Effect From July 1, 2022.

What is the maximum moratorium period allowed under restructuring policy?

Term Loans & Demand Loans Allow moratorium period during the expected future period of stress, subject to a maximum of two years. The future period of stress shall be assessed based on the borrower’s declaration of projected income.

What are FEMA guidelines?

According to FEMA guidelines for NRIs, sale proceeds of such assets are non-repatriable outside India without RBI approval. Repatriation of up to USD 1 million per financial year is allowed if you have inherited the property or retired from employment in India.

What is the minimum amount for foreign outward remittance?

No minimum amount of remittance is stipulated. Restriction on initial remittance to overseas beneficiary within 4 days of beneficiary activation is Rs. 5,00,000/-.

What are the three types of debt restructuring?

Restructuring normally is accomplished in three ways: via an extension, a composition, or a debt-for-equity swap. An extension occurs when creditors agree to lengthen the debtor firm’s repayment period. Creditors often agree to suspend temporarily both interest and principal repayments.

What is the eligibility for loan restructuring?

To be eligible for loan restructuring, the basic requirements are as follows: The applicant’s loan account must have no dues pending as on Mar 01, 2020 or dues overdue for less than 30 days (89 days for MSME customers). The applicant’s income should have been impacted as a result of the COVID-19 pandemic.

What is loan restructuring scheme?

Loan restructuring 2.0 Under this scheme, debtors had the option to either opt for a moratorium or request for a suspension of their EMI payments for a few months. Alternatively, they could also request their EMIs to be reduced, so that they could continue making regular payments.

Is moratorium extended in 2021?

Eligible borrowers can apply for the second moratorium till September 30, 2021. Provided you fulfill the eligibility criteria, your bank will take up to 90 days to offer the facility to you.

Can NPA account be restructured?

Accounts classified NPA can be restructured; however, the extant asset classification norms governing restructuring of NPAs will continue to apply.