A week after Union Finance Minister Nirmala Sitharaman asked the lenders and non-banking financial companies (NBFCs) to initiate a loan restructuring scheme for companies facing the crisis due to Covid-19, the Reserve Bank of India (RBI) on Monday revealed the financial parameters meant for the resolution plans included the scheme.
The committee has shared recommendations for 26 sectors that can be kept in consideration by lending institutions while zeroing down the loan resolution plans. The committee stated that the banks could inculcate a graded strategy based on the intensity of the coronavirus pandemic in a sector.
The scheme was rolled out to help the companies and organisations facing the jolt due to coronavirus and the induced lockdowns. The banking regulator’s new announcement is made on the basis of the recommendations of the K V Kamath committee, which submitted its final report last week.
As per the K V Kamath committee, power, iron and steel, construction, real estate, roads, wholesale trading, aviation, logistics, hotels, textiles, consumer durables, restaurants and tourism, mining are among the sectors that will need restructuring.