The Reserve Bank of India is to reject banks request to extend interest payment relief to working capital borrowers, as it seeks to wind down some of the pandemic era policies amid brighter prospects for the economy, three people aware of the matter said.
As part of Coved package past year, RBI allowed banks to convert the unpaid interest component in cash credit or overdraft facility into a fresh term loan to help stressed borrowers. The deadline of repay loan is 31 March. Several banks have approached to allow companies more time to repay such loans after borrowers complained that they were not out of the woods yet, the people cited above said, requesting anonymity. The return economic growth was helped by restart the economic activity as the government lifted lockdown restrictions and boosted spending. The bank gives a period by 31 March.