Mumbai: The Reserve Bank of India has decided to provide an asset classification standstill for standard accounts that avail a moratorium between 1 March and 31 May, said governor Shaktikanta Das on Friday.
This effectively means that the bad loan classification period changes to 180 days for all such accounts from 90 days. Banks classify accounts as standard, substandard and doubtful, based on the number of days their payments are delayed.
Borrowers turn non-performing only after 90 days of overdue and are classified as standard prior to that, notwithstanding any delay in repayments.
Addressing the media through a video conferencing on Friday, Das said, the central bank recognises that the onset of covid-19 has also exacerbated the