MUMBAI, March 19 -- The Reserve Bank of India (RBI) is likely to reject banks' request to extend interestpayment relief to working-capital borrowers, as it seeks to wind down some of the pandemic-era policies amid brighter prospects for the economy, three people aware of the matter said.
As part of the covid package last year, RBI had allowed banks to convert the unpaid interest component in cash credit or overdraft facility into a fresh term loan to help stressed borrowers. The deadline to repay these loans is 31 March.
Several banks had approached the regulator in recent weeks to allow companies more time to repay such loans after borrowers complained that they were not out of the woods yet, the people cited above said, requesting anony...