NBFCs get extra 6-months to keep system ready to implement NPA norms

The Reserve Bank of India (RBI) has given finance companies extra time till September 30, 2022 to have systems ready to implement rule wherein bad loans can be upgraded as ‘standard’ asset only when entire arrears of interest and principal are paid. In November 2021, RBI had given time till March 31, 2022 to implement the rule.

Mahesh Thakkar, director-general, Finance Industry Development Council (FIDC) said, "This is good for the industry as finance companies had asked for additional time. The financial year closure was approaching (March 2022), so firms will not be adversely affected. NBFCs will be able to provide,