Skip to main content

NBFCs Fear Spike in Loan Defaults, Write to RBI for Restructuring




 Follow us on - 

Youtube - https://www.youtube.com/user/aseemaggarwal92
Twitter - https://twitter.com/aseem252
Blog - https://aseemconsult.blogspot.com/

The Finance Industry Development Council (FIDC) has written to the Reserve Bank of India (RBI) seeking permission to restructure stressed loans given by NBFCs to retailers and small businesses, in the wake of the ongoing COVID crisis. The letter has asked for restructuring loans even if they had been restructured earlier.

“Considering the severe second wave of COVID-19, the retail borrowers, including the MSMEs, as also the retail and wholesale trader industry shall be in urgent need of support from the lenders, to revive their economic activities,” said the FIDC letter. It has requested an extension of the restructuring scheme till March 31, 2022.

The second wave of COVID-19 cases in India has caused multiple states in India to impose quasi-lockdowns and severe restrictions on movement. There are also reports in news media that there is expected to be a vaccine shortage in the country until mid-May at least. MSMEs (micro, small and medium enterprises) have borne the hardest impact of all in this second surge.

The FIDC has also requested a recast of loans by smaller NBFCs (with an asset size of less than Rs 500 crore).

It said that smaller NBFCs can only raise funds by availing term loans from banks and financial institutions like Sidbi. “We, therefore, submit that these small NBFCs may be given the benefit of getting their loans restructured (one-time) from banks and financial institutions (FIs),” said the FIDC letter.

In case of any queries, suggestions, the author can be reached at following details - 

Regards 
Aseem Aggarwal
CA, CPA, CS, B.Com(H)
+91 7508000350
aseem@ksafirm.com


Source - https://in.investing.com/news/nbfcs-fear-spike-in-loan-defaults-write-to-rbi-for-restructuring-2702177

Comments

Post a Comment

Popular posts from this blog

Investing in Gold: Bridging Tradition with Modern Strategies in India

Follow us on -  LinkedIn  - https://www.linkedin.com/in/aseem-aggarwal-1b365549/ Youtube  -  https://www.youtube.com/user/aseemaggarwal92 Twitter  -  https://twitter.com/aseem252 Blog  -  https://aseemconsult.blogspot.com/     Gold holds a special place in the hearts of Indians, deeply rooted in tradition and culture. For generations, it has been a symbol of prosperity, a hedge against economic uncertainties, and an integral part of auspicious occasions. As we step into the modern era, the allure of gold remains, but the ways we invest in it have evolved. Let's delve into the world where tradition meets contemporary investment strategies in the context of gold in India. The Timeless Appeal of Gold For centuries, Indians have revered gold not only for its aesthetic appeal but also for its intrinsic value. Traditionally, gold has been acquired in the form of jewelry, coins, or bars, often passed down through generations as a store of wealt...
Post a Comment
Read more

E-invoice enabled for businesses with annual turnover of Rs 5 crore

Follow us on -  LinkedIn  - https://www.linkedin.com/in/aseem-aggarwal-1b365549/ Youtube  -  https://www.youtube.com/user/aseemaggarwal92 Twitter  -  https://twitter.com/aseem252 Blog  -  https://aseemconsult.blogspot.com/       Introduction: In a significant move to promote digitalization and streamline the tax system, the Indian government has introduced the concept of e-invoicing. Initially implemented for businesses with a turnover of Rs 100 crore or more, the government has now extended e-invoicing to businesses with an annual turnover of Rs 5 crore. This blog post explores the implications of this development and its potential benefits for businesses. What is E-Invoicing? E-invoicing is an electronic method of generating and sharing invoices between businesses and their suppliers or customers. It involves the creation of a standardized digital invoice format, which is then authenticated by the Goods and Services Tax Network (G...
Post a Comment
Read more

Big Relief for E-Invoicing in GST

  Follow us on -  LinkedIn  - https://www.linkedin.com/in/aseem-aggarwal-1b365549/ Youtube  -  https://www.youtube.com/user/aseemaggarwal92 Twitter  -  https://twitter.com/aseem252 Blog  -  https://aseemconsult.blogspot.com/     Regards  Aseem Aggarwal CA, CPA, CS, B.Com(H) +91 7508000350 aseem@ksafirm.com LinkedIn  - https://www.linkedin.com/in/aseem-aggarwal-1b365549/ Youtube  -  https://www.youtube.com/user/aseemaggarwal92 Twitter  -  https://twitter.com/aseem252 Blog  -  https://aseemconsult.blogspot.com/
Post a Comment
Read more