RBI PROVIDES EXTRA 60 DAYS TENURE TO REPAY LOANS

The Reserve Bank of India on Monday provided an extra 60-day period to repay housing, car, farm and other loans in view of the demonetisation move taken by the Centre.This is applicable to loans payable between November 1 and December 31, the RBI said in a notification.

In a major relief to public, RBI gives additional 60 days time period for loan repayments with banks; the apex bank relaxes its NPA classification for loan amount upto one crore rupees in the wake of demonetisation.Banks employees have been working overtime to handle the pressure of exchanging old notes or hand out money to the vast majority of the population, affecting regular bank business – giving loans, assessing credit-worthiness and clearing cheques.

Term loans, whether business or personal, secured or otherwise, the original sanctioned amount of Rs 1 crore or less, on the books of any bank or any NBFC, including NBFC (MFI) would also get benefit of this relaxation. This will also include housing loans and agriculture loans.The relaxation is available to entities running working capital accounts with any bank with the sanctioned limit of Rs 1 crore or less.