Standards for classifying companies' assets in the NPA will be relaxed

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New delhi date. 22 February 2020, Saturday

The government will ask the Reserve Bank to relax the rules for classifying bank loans into sub-stard assets of certain sectors that are currently facing difficulties due to coronavirus in China.

Finance Ministry sources said the finance ministry sources will be asked to relax the standards of bed loans for companies in the import-export trade or for companies that depend on China for their raw material requirements, where trade activities are currently lost.

The finance ministry is considering the introduction of several companies. Due to the coronavirus, companies are also facing problems with payments. Such companies will also be assured of providing funding options.

The coronavirus has lost the functioning of Indian industries associated with pharma, auto, diamonds and solar equipment in the country. It is worth mentioning here that Reserve Bank Governor Shaktikant Das said that while the coronavirus would have a limited impact on the Indian economy, it would have an impact on global GDP and trade, given the size of the Chinese economy. India is considering alternatives to the sectors that are likely to be affected.

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