FM tells banks to frame loan recast scheme for all viable units by Sept 15

Lenders told to put in place FAQs on recast on their websites in multiple languages

Finance Minister Nirmala Sitharaman on Thursday told banks to put in place by September 15 loan restructuring schemes to rescue all viable business units affected by the Covid-19 pandemic. She was holding a review meeting with heads of scheduled commercial banks and non-banking financial companies (NBFCs) through videoconferencing.

Top bank executives suggested key changes to the Reserve Bank of India’s (RBI’s) loan restructuring scheme to accommodate borrowers who faced stress for a longer period of time, besides lowering the provisioning requirements for restructuring housing loans, the chief executive officer of a bank said, requesting anonymity. 

Finance ministry officials told bankers the ministry