RBI to extend deadline for asset review
The government had in November banned high value notes, which accounted for 86 per cent of the entire currency in circulation.
New Delhi: The Reserve Bank is expected to extend the deadline for asset quality review (AQR) of lenders by a few months because of the unusual situation in the financial sector following demonetisation, bankers said. The cleaning up exercise that is required should be done properly, they said.
A senior bank official said lenders may require few more months for proper implementation of AQR as most of their staff was busy with demonetisation for two month.
Besides, RBI has extended the 90-day breather from getting accounts classified under non-performing asset (NPA) category for loans up to Rs 1 crore.
This dispensation is applicable to dues payable between Nov. 1 and Dec. 31. This will also come in the way of AQR for which RBI had set a deadline of March 2017, said the official.
The government had in November banned high value notes, which accounted for 86 per cent of the entire currency in circulation.
The RBI had embarked on the exercise from Dec. 2015 and asked banks to recognise some top defaulting accounts as NPAs and providing for them.