31 December 2020 is a deadline fixed for banks to accept restructuring request from those, whose business have been badly affected from COVID-19 is unlikely to be extended. The Central Bank’s governor Shaktikanta Das given indication in a meeting with bankers.
A two-day virtual meeting was held with public sector and private sector banks through video conference. “Banks should make adequate provisions as the third quarter is going to be ended and loans go bad”. Mr. Das warned. Banks should make more efforts to raise capital to grow loans, he added.
The Hon’ble Supreme Court directed the RBI that NPA classification would not be applied to any bad accounts affected due to COVID-19. RBI governor asked the banks to make enough provisions for these loans.