Shaktikanta Das India city Mumbai 2020 pandemic guidelines Coronavirus Shaktikanta Das India city Mumbai

Borrowers to skip NPA tag even as banks set aside more provisions

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MUMBAI : The Reserve Bank of India (RBI) on Friday made temporary changes to its asset classification norms in a balancing act between offering reprieve to borrowers and ensuring adequate risk buffers for banks.

Addressing media over a video-conference, RBI governor Shaktikanta Das said that the non-performing asset (NPA) classification norm would exclude the three-month moratorium period, for those borrowers who have availed of it.

This effectively changes the NPA recognition period for such loans to 180 days from due date, instead of the extant norm of 90 days. “There will be an asset classification standstill for all such accounts from 1 March to 31 May 2020," Das said.

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