GJ Town India

To help Small Borrowers and retail segment   Jewellery Market Bureau:  India Ratings and Research (Ind-Ra) opines the stimulus measures announced by the Reserve Bank of India (RBI) to tackle the second covid wave would help contain the pressure on the banking system’s asset quality, especially for micro, small and medium enterprises (MSMEs) and retail segment.   Banks can also support the incremental credit needs of small businesses through a reassessment of their working capital requirement, though the system’s propensity, in absence of external stimuli, could be tested as the perceived risk would be elevated amid the prevailing challenges. Consequently, both delinquencies (at least in 1QFY22) and the quantum of restructured assets could be higher than last year, given that there is no moratorium without restructuring. Assistance to SMEs/MSMEs Continues through All Lenders: The RBI has permitted restructuring of MSMEs in line with the notification dated 6 August 2020;...

Ex-gratia to loan accounts during March 1, 2020 to August 31, 2020 RBI announced further the Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts from March 1, 2020 to August 31, 2020. The Government of India has announced the Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020) on October 23, 2020.   The scheme mandates ex-gratia payment to certain categories of borrowers by way of crediting the difference between simple interest and compound interest for the period during March 1, 2020 to August 31, 2020 by respective lending institutions.   The details of the Scheme are available at RBI & banks! All lending institutions are advised to be guided by the provisions of the Scheme and take necessary action within the stipulated timeline is being i...