In view of cash crunch being faced by borrowers, the RBI today provided additional 60 days for repayment of housing, car, farm and other loans worth up to Rs 1 crore.
This is applicable to loans payable between November 1 and December 31, the RBI said in a notification.
"... it has been decided to provide an additional 60 days beyond what is applicable for the concerned regulated entity for recognition of a loan account as substandard," it said.
The RBI told banks, NBFCs, housing finance companies and others that this is a short-term deferment of norms for classification of a loan account as sub-standard due to delay in payment of dues owing to currency crunch.
The central bank has categorically said the delay in payment of loan dues falling between November 1 and December 31 should not result in restructuring of loan accounts.
Dues payable before November 1 and after December 31 this year will be covered by the extant instruction for the respective regulated entity with regard to recognition of NPAs," it said.
The demonetisation of higher value currency notes has affected normal banking activities including clearing of cheques. Besides, borrowers are unable to get payments from their creditors due to various restrictions including cash withdrawal limit of Rs 24,000 per week, limiting their options to repay their dues.