Kamath committee picks 26 sectors for loan restructuring, says RBI

Central bank allowed lenders to grant loan moratorium for three months on EMIs falling due between March 1 and May 31; it later extended the scheme until August 31

A week after Finance Minister Nirmala Sitharaman asked banks and non-banking financial companies (NBFCs) to roll out a loan restructuring scheme for companies facing Covid-19-related stress, the Reserve Bank of India (RBI) on Monday announced the financial parameters for the resolution plans under the scheme.

The committee has made recommendations for 26 sectors that could be factored by lending institutions while finalizing loan resolution plans. The committee said banks could adopt a graded approach based on the severity of the coronavirus pandemic in a sector. 

The scheme was announced to bail out companies and organisations hit by the coronavirus