Stressed borrowers get a 3 month breather
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New Delhi, May 23 -- Indian companies can suspend loan repayments to banks for another three months until end August and repay the accrued interest over seven months starting September, the central bank said, offering some comfort to businesses that have struggled to stay afloat amid a national lockdown that has choked revenues.
Reserve Bank of India (RBI) governor Shaktikanta Das said the move would help borrowers. "It was posing problems in cash-flow management for various borrowing entities," Das said.
The central bank also eased working capital financing, permitting lenders to reassess the working capital cycle of a borrower till 31 March and allowed banks to increase group exposure limits to enable additional funding to corporates....
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