Banks Want RBI to Extend Recast Window

Indian Banks Association (IBA) has made a representation to the Reserve Bank of India (RBI) to extend the restructuring window outlined by the KV Kamath committee by another three months to March 31, 2021. The window to seek restructuring is set to lapse on December 3

BY Realty Plus
Published - Friday, 04 Dec, 2020

Indian Banks Association (IBA) has made a representation to the Reserve Bank of India (RBI) to extend the restructuring window outlined by the KV Kamath committee by another three months to March 31, 2021. The window to seek restructuring is set to lapse on December 31. Bankers have requested the regulator that given the case in the Supreme Court leading to a prolonged moratorium, they haven’t been able to assess borrower cash flows. Bank books are very opaque currently since several borrowers are sitting on the fence & awaiting a positive verdict from the apex court. Also, with borrowers pinning hopes on the Supreme Court verdict in the loan moratorium case, several customers have sought more time to submit recast requests. IBA co-ordination committee set up to study recast progress of Covid related case had held regular feedback meetings with Kamath committee members & expressed the need to extend timelines.