https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12104&Mode=0
RBI has given relief to individuals and small borrowers having credit exposure upto Rs.25 crores to be given covid relief. The limit has been enhanced to Rs.50 crores. Whatever resolution has to be done by the banks for them has to be as per the earlier RBI circular dated 5th May, 2021. Read on.
A reference is invited to circular DOR.STR.REC.11/21.04.048/2021-22 on “Resolution Framework – 2.0: Resolution of Covid-19 related stress of Individuals and Small Businesses” dated May 5, 2021.
2. Clause 5 of the above circular specifies the eligible borrowers who may be considered for resolution under the framework and includes the following sub-clauses:
(b) Individuals who have availed of loans and advances for business purposes and to whom the lending institutions have aggregate exposure of not more than ₹25 crore as on March 31, 2021.
(c) Small businesses, including those engaged in retail and wholesale trade, other than those classified as MSME as on March 31, 2021, and to whom the lending institutions have aggregate exposure of not more than ₹25 crore as on March 31, 2021.
3. Based on a review, it has been decided to enhance the above limits from ₹25 crore to ₹50 crore.
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