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Only standard loan accounts as of 1 March can be recast under pandemic scheme: RBI

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MUMBAI : The Reserve Bank of India (RBI) has clarified that loans which have remained standard without any defaults as of March 1, 2020, will be eligible for restructuring under the pandemic-related resolution framework issued in August.In clarifications issued late last night to borrowers as well as lenders about the August 6 circular, RBI said a loan account that was due for more than 30 days as on March 1, 2020, but subsequently got regularised, will not be ineligible for resolution under the COVID-19 resolution framework.This is because the restructuring framework is applicable only for eligible borrowers who were classified as standard as of March 1, 2020.However, such accounts may still be resolved under the prudential framework dated.

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