The RBI has relaxed rules for classifying bad loans for small borrowers, saying they may need more time to repay their loan dues after the government withdrew Rs 500 and Rs 1,000 notes. Banks and other financiers will get an additional 60 days for recognising housing, car, farm and other loans up to one crore as substandard, the RBI said in a notification.
The RBI said farmers may be allowed to draw up to Rs 25,000 per week in cash from their loan (including Kisan Credit Card limit) or deposit accounts subject to their accounts being compliant with the KYC norms. Farmers have also been allowed to purchase seeds for the rabi crops using old Rs 500 notes from government outlets or state, central agriculture university.
Sourced from agencies, Featured image courtesy: International Business Times
