Govt, RBI mull relaxing bad loan rules for sectors hit by coronavirus
Photo Credit: Reuters

India’s government and central bank are considering giving relief to banks, aviation and other hospitality sectors hit by the coronavirus outbreak by relaxing bad loan classification rules, a source familiar with the matter said.

The government is discussing increasing timeline by 30-60 days to classify a loan as a bad loan, the source said. Currently, a debt not serviced for 90 days is classified as a bad loan.

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