RBI issues guidelines to banks for poultry sector

The Reserve Bank issued guidelines to banks on recovery of dues from poultry units, which have been hit hard following the avian influenza outbreak in some parts of the country.

"Principal and interest due on working capital loans as also instalments and interest on term loans which have fallen due for payment on/after the onset of bird flu, that is February one and remaining unpaid may be converted into term loans," an RBI release said.

The converted loans could be recovered in instalments based on projected future inflows over a period up to three years with an initial moratorium of up to one year.

The release said that remaining portion of term loan could be rescheduled with a moratorium period of up to one year depending upon the cash flow generating capacity of the unit.