Maintain separate category for Covid-19 moratorium seekers: RBI to banks

Step will help banks, financial institutions separate regular debt restructuring and those availed due to the pandemic

The Reserve Bank of India (RBI) on Friday told banks and financial institutions to make a subhead to report their debt restructuring related to the Covid-19 pandemic.

Banks, non-banking financial companies (NBFC), all India financial institutions (AIFI), and microfinance institutions (MFI) will have a new catalogue called ‘Restructured due to Covid-19’ in their reporting format to credit information companies (CIC).

The RBI has said before those opting for restructuring due to Covid-19-related stress won’t be categorised as bad debt and their credit score won’t be affected. Such carving out in separate heads would help the banks and credit bureaus to