Finance Minister Nirmala Sitharaman is set to meet with top management of Scheduled Commercial Banks (SCBs) and Non-Banking Financial Companies (NBFCs) on Thursday, September 3 to review the implementation of a resolution framework for COVID-19-related stress in bank loans.
The Ministry of Finance said in a statement that the meeting will "focus on enabling businesses and households to avail the revival framework on the basis of viability" adding that essential measures such as "finalising bank policies and identifying borrowers, and discussing issues that require addressing for smooth and speedy implementation" will also be discussed.
The review meeting will be held ahead of the KV Kamath-led committee's recommendations on the qualifying criteria for restructuring of loans impacted by the coronavirus crisis.
The Reserve Bank of India (RBI) Governor Shaktikanta Das had, earlier this month, said that a resolution framework for COVID-19-related stressed accounts will be concluded and finalised by September 6.
Das had announced the resolution framework for such (COVID-19-related stressed) accounts after the Monetary Policy Committee's (MPC) meet on August 21.
Meanwhile, banks have also begun identifying borrowers eligible for one-time debt restructuring. Punjab National Bank (PNB) said last week that 5-6 per cent of its loan book may qualify for a one-time debt recast. They (banks) are expecting to get clearer picture by September, when the KV Kamath committee's guidelines on debt recast are likely to be released.
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