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

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