April 29 (Reuters) - India's central bank released on Wednesday a framework allowing banks and other regulated entities to extend relief measures to borrowers affected by natural calamities.
Here are the details:
o Relief measures may include rescheduling payments, moratoriums, converting interest into a credit facility, or sanctioning additional finance
o Borrowers who have not defaulted on repayments for more than 30 days will be eligible for such relief measures
o Rules take effect from July 1; lenders can extend relief to eligible borrowers with an opt-out window of 135 days
o Banks will incorporate resolution plans and relief measures in their credit policies
o India has seen an increase in extreme weather-related disruptions in recent years, which have affected agricultural output, infrastructure and household incomes
o The norms follow draft directions proposed in January
o The RBI also issued amendments across multiple directions covering commercial banks, cooperative banks, regional rural banks, small finance banks, non-bank lenders as part of the updated framework
(Reporting by Surbhi Misra in Bengaluru; Editing by Mrigank Dhaniwala)
