RBI to restructure loans in disaster-hit areas of Uttarakhand

Allahabad Bank CMD Shubhalakshmi Panse today said she has received letter from RBI for 'restructuring' of loans in disaster-affected areas od state

The Reserve Bank of India (RBI) has provided relief to the disaster-affected people in Uttarakhand by restructuring loans for a period of one year.

Confirming this, Allahabad Bank Chief Managing Director Shubhalakshmi Panse said she had received a letter from RBI for “restructuring” of loans in the disaster-affected areas of the state. “I have received a letter from the RBI regarding restructuring of loans in the disaster-affected areas”, she said after handing over a cheque of Rs 5 crore to Uttarakhand Chief Minister Vijay bahuguna for relief works.

State Bank of India Assistant General Manager Bhagwat Singh, who also heads the state-level bankers’ committee (SLBC), said the banks had sent a proposal to RBI to put a freeze for two years for loans. However, RBI declined the request and said such loans could only be restructured for one year.

Singh said preliminary assessment showed that loans to the tune of Rs 80 crore were being affected by the disaster in the state. “The banks, during the last meeting held in Dehradun on July 11, had made an assessment in this regard but final figures regarding the loans are being awaited,” he added.

Chief Minister Vijay Bahuguna had stated last month  that the state government had written a letter to the Centre, requesting for a freeze on loans in the disaster-affected areas.

According to an estimate by the Industries Association of Uttarakhand, an SME promotion body, nearly 43,000 people working in over 19,590 registered MSME units may be left without jobs as the devastation has hit a large area of the hill state that includes Rudraprayag, Chamoli, Uttarkashi, Bageshwar and Pithoragarh districts.

According to a survey of ASSOCHAM, the tourism sector has been badly affected by the disaster and would lose Rs 4170 crore per year.