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Government, RBI Mull Relaxing Bad Loan Rules For Sector Hit By Coronavirus

The government is discussing increasing timeline by 30-60 days to classify a loan as a bad loan.

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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.

(Reuters)


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