RBI asks banks to give 60 more days to small borrowers to repay loans

21 November, Mumbai

Considering the cash crunch that small borrowers may be facing in view of the government’s demonetisation drive; RBI has asked banks to provide small borrowers a 60 day extension for repayment of their loans.

RBI has said that this relaxation will be applicable for loans upto Rs 1 crore and for dues payable between November 1, 2016, and December 31, 2016.

This will be applicable for all loans like housing, car and farm loans; adding that this short term deferment will not result in restructuring of loans.

RBI has said that this relief will be applicable to loans sanctioned by all banks, non-banking financial companies, housing finance companies, state cooperative banks and district central cooperative banks.