Government eyes relaxation in bank loan norms to business hit by coronavirus

▴ Bank loan
The government is going to seek relaxation in rules for classification of bank loans to a certain set of companies as a “sub-standard” asset, citing difficulties faced by them.

He government is set to urge for ease in rules for classification of bank loans to a particular set of companies as a “sub-standard” asset, looking at the difficulties faced by them. These organizations are consistent in export and import or are individuals who are highly dependent on raw materials and inputs, imported from China where businesses have got scrambled owing to the coronavirus outbreak.

The move follows a petition from some industry representatives to the minister of finance Nirmala Sitharaman to not just relax the norms but also ensure access to funds to bridge over the payment issues which will arise thanks to problems in accessing inputs and important staple.

The finance ministry is predicted to take up the difficulty with the Federal Reserve Bank of India (RBI) over the subsequent few days to make sure that companies that are a part of special mention accounts (SMAs) still, get access to funds despite payment problems.

The change within Income Recognition and Asset Classification (IRAC) norms are seen to be a short-lived measure until the impact of the deadly virus recedes. a corporation is put in an SMA-0 category if the principal or loan remains unpaid for up to 30 days, while defaults of 31 to 60 days lead to an SMA-2 classification. Amounts remaining overdue for up to 90 days cause an SMA-3 categorization.

During the interaction, it had emerged that a number of the industries — like pharmaceuticals, electronics, auto parts, and solar equipment — had been impacted by a coronavirus, which has now claimed over 2,200 lives and infected on the brink of 80,000 people.

Following the FM’s consultations, the govt has already moved in to invoke the “force majeure” clause to supply relief to suppliers who are finding it tough to execute government contracts thanks to the coronavirus outbreak. Late Thursday evening, the govt instructed customs authorities to supply 24x7 clearance in the least airports, seaports and inland container depots. a number of the opposite moves are expected to be announced over the approaching days.

Tags : #bankloannorms #coronavirus #IRAC #RBI

About the Author


Team Medicircle

Related Stories

Loading Please wait...
-Advertisements-


Trending Now

PM addresses the Nation today, announces free vaccinesJune 07, 2021
Why inhalers are best for treating asthma, well illustrated by Dr. Anil SingalMay 12, 2021
Dr. Rohan Palshetkar shares his invaluable insights about the Maternal Mortality Rate causes and improvements in India April 29, 2021
It is important to adopt a non-judgmental attitude towards any teenage girl seeking contraceptive advise suggests Dr. Teena Trivedi, Obstetrician and GynecologistApril 16, 2021
80% of the diseases are psychosomatic which means they have roots in the mind and this is where homeopathy steps in - It resolves physical ailments by finding the cause in the mind – Dr. Sanket Dhuri, Consultant Homeopath April 14, 2021
A futuristic Vision of a Healthcare Entrepreneur: Shyatto Raha, CEO, and Founder of MyHealthcareApril 12, 2021
Saher Mehdi, Founder and Chief Scientist at wellOwise talks about aspects making healthcare more equitable and reachableApril 10, 2021
Wide variety of therapies to address autism in children explained by Dr. Shilpa Jasubhai, Clinical PsychologistApril 09, 2021
Allopathic and Homeopathic medicines should not be taken together says Dr. Sunil Mehra, Homeopath ConsultantApril 08, 2021
The charm of homeopathic medicine is that it can be taken with conventional medicines – Dr. Shruthi Shridhar, Consulting Homeopath April 08, 2021
Dissociative Identity Disorder and associated concepts explained by Dr. Vinod Kumar, Psychiatrist and Head of Mpower - The Centre (Bangalore) April 07, 2021
Dissociative Identity Disorder explained by Dr. Shilpa Jasubhai, Clinical PsychologistApril 05, 2021
Sehat Ki Baat, Karishma Ke Saath- Episode 6 Healthy Diet For Boosting Metabolism Which Can Help Thyroid Patients April 03, 2021
Significant Pointers on Kidney Health by Dr. Santosh Waigankar, Consultant Urooncologist and Robotic Surgeon at Kokilaben Dhirubhai Ambani HospitalApril 01, 2021
Dr. Vaishal Kenia, Ophthalmologist Talks About the Different Possibilities Available for the Treatment of Glaucoma Depending Upon Their Type and SeverityMarch 30, 2021
No Definitive Role of Diet in Treatment of Lymphedema but Intake of Calories, Salt and Long Chain Fatty Acids should be controlled says Dr. Ramani CVMarch 30, 2021
Dr. Kiran Chandra Patro, Senior Nephrologist Talks About Dialysis as the Temporary Process and Not a Permanent Cure for the Patients of Renal DysfunctionMarch 30, 2021
Two out of three new chronic kidney disease patients are found to have diabetes or hypertension informs Dr. Sreeharsha HarinathaMarch 30, 2021
Glaucoma Treatment: Medications or Surgery? A valuable piece of advice from Dr. Pranay Kapdia, Chairman and Medical Director of Kapadia Eye CareMarch 25, 2021
Dr. Shraddha Satav, Consultant Ophthalmologist Recommends that Everybody After 40, Should Go for the Complete Eye Checkup at Regular IntervalMarch 25, 2021