For India Inc, 30-day grace after loan default comes as a major relief

On February 12, 2018, the RBI had issued a circular under which banks were asked to initiate resolution or restructuring of loans of Rs 2,000 crore or more if there was a single day of default

The Reserve Bank of India (RBI) has dropped the one-day default rule and given a 30-day breather to lenders for review of the borrower account. 
 

According to the revised norms on stressed assets issued by the RBI on Friday, lenders can review a borrower account within 30 days of default. Earlier, the banks had to start resolution within one day of default. 

The chief financial officer of an engineering, procurement and construction (EPC) company said the one-day default rule was a huge headache for companies, as it would trigger a rating downgrade, which, in turn, would impact borrowing cost and