RBI reverses course on restructuring of troubled loans

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Shaktikanta Das

RBI governor Shaktikanta Das

The Reserve Bank of India has gone ahead with plans to allow banks to restructure troubled loans, reversing a key policy priority of two previous governors.

Under the new policy, banks and non-bank financial companies will be allowed to make a one-time restructuring of loans to small and medium-sized businesses without such loans being classed automatically as “non-performing”. Non-performing loans come with higher provisioning requirements and tougher scrutiny from supervisors.

Firms that



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