RBI may heed banks' request for tweaking S4A guidelines
CNBC-TV18 learns from sources that RBI could be mulling a few tweaks to the S4A of Scheme for Sustainable Structuring of Stressed Assets.
Banks have requested the regulator to consider their plea for a more watered-down version of the scheme which splits a loan into sustainable and unsustainable parts. The sceheme is meant for restructuring huge loans where the project is up and running.
However, the lenders now say they want the S4A to be applicable for non-project loans as well. Banks say a lower provision requirement is needed for the unsustainable portion of debt.
However, the lenders now say they want the S4A to be applicable for non-project loans as well. Banks say a lower provision requirement is needed for the unsustainable portion of debt.
They asked the RBI to allow changes in the repayment schedule of sustainable debt, too. Banks have also sought changes in norms to allow cases with a more than 50 percent component of sustainable debt to be applicable for S4A. RBI did not respond to CNBC-TV18's query.
Read More - RBI Updates
0 Comments