The Reserve Bank of India (RBI) on Friday raised the loan threshold limit permitted for restructuring under the Resolution Framework 2.0.
The central bank doubled the loan restructuring limits of struggling small businesses to Rs 50 crore from Rs 25 crore in view of the impact of the second wave of COVID-19 on such companies.
"With a view to enabling a larger set of borrowers to avail of the benefits under Resolution Framework 2.0, it has been decided to expand the coverage of borrowers under the scheme by enhancing the maximum aggregate exposure threshold from Rs 25 crore to Rs 50 crore for MSMEs, non-MSME small businesses and loans to individuals for business purposes," the RBI said in a release post the announcement of MPC outcome by RBI Governor Shaktikanta Das.
The central bank had announced the Resolution Framework 2.0 on May 5 to help small borrowers overcome the impact of COVID 2.0 that continues to ravage smaller businesses.
RBI came out with the scheme in a bid to provide succour from the scourge of the COVID-19 pandemic.
Under Resolution Framework 2.0, individuals and small businesses having exposure up to Rs 25 crore could opt for loan restructuring if they had not availed the earlier scheme.
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