Home / Finance / News / Covid-19 impact: RBI may review extra-provisioning norms of June 7 circular

Covid-19 impact: RBI may review extra-provisioning norms of June 7 circular

Terms on upgrade of accounts also likely to be tweaked as the central bank's June 7 circular may get a relook

Deposit insurance may be raised to Rs 5 lakh; new wholesale plan in offing

Premium

Well-placed sources said discussions were on between the banking regulator and senior bankers on the thresholds under the circular, which are almost impossible to be adhered to after the outbreak of the Covid-19 pandemic.

Raghu Mohan Mumbai

4 min read Last Updated : Jun 23 2020 | 1:37 AM IST

The Reserve Bank of India (RBI) may review its June 7 circular’s key trigger points on additional provisioning and the terms to upgrade accounts.

A view that is gaining traction is the grant of longer timelines of up to a year before additional provisioning norms kick in, and reducing it by, say, 10 per cent — from 20 per cent after 180 days from the end of the review period; and from 15 per cent after a year — or a reduction in the additional provisioning to 15 per cent from 35 per cent.

Well-placed sources said discussions were on

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in