Taking cognisance Of the prevailing situation , the RBI announced resolution framework 2.0 under which individuals and small businesses having exposure up to Rs2.5 crore can opt for loan restructuring if they had not availed the earlier scheme
To provide Support to small businesses hit by the second coronavirus wave , banks have initiated the process of restructuring of loans up to Rs 25 crore in line with the Covid -19 relief measures announced by the Reserve Bank earlier this month. Many lending Institutions have got board approval for the resolution framework and eligible borrowers are being contacted.
For example, the bank of india has sent messages to it’s eligible customers to submit their willingness to debt recast online.
“ in these trying times, we offer you a helping hand by extending relief as per RBI Resolution framework 2.0 dated may 5th , 2021.if you are under financial stress caused by the covid second wave account ”, the massage said.
Meanwhile, another public sector lender Punjab & Sind Bank said it’s debt recast plan as specified by the RBI has been approved by the board.
“we will be reaching out to our customers including through BCs… .. We will get a fair idea about how many customers want to avail the restructuring in the next few days Or so,” Punjab & Sind Bank managing director S krishanan said.
The resurgence of the fresh covid -19 wave has put many MSME, individual and small businesses under stress.