Due to the resurgence of COVID-19 in India, the consequent containment measures may impact the recovery process and create new uncertainties. Hence, with the objective of alleviating the potential stress to borrowers, RBI has issued 2 circular/guidelines namely “Resolution Framework 2.0: Resolution of COVID-19 related stress of Individuals and Small Businesses” vide DOR.STR.REC.11/21.04.048/2021-22 and “Resolution Framework 2.0 - Resolution of COVID-19 related stress of Micro, Small and Medium Enterprises (MSMEs)” vide DOR.STR.REC12/21.04.048/2021-22 dated 5th May, 2021.
Under Loan restructuring, customers who are under financial stress may be offered options like rescheduling of payments, extension of residual tenure of loan, or EMI/Interest Moratorium, etc. in line with RBI circular on Resolution Framework 2.0 and depending on the customer’s financial well-being and as per the credit evaluations done as per the policy framed by us on the loan restructuring.