MUMBAI: The Reserve Bank of India on Wednesday further extended the grace period for banks, non-banking finance companies and micro-finance companies to classify bad loans by 30 days in the case of agriculture and term loans of up to Rs 1crore.

The central bank had on November 21 had asked lenders to provide additional 60 days to small ticket borrowers to pay installments due between November 1 and December 31 in view of the cash crunch following the demonetization drive.

“Permit all regulated entities to defer the down grade of an account that was standard as on November 1, 2016, but would have become NPA for any reason during the period November 1, 2016 to December 31, 2016, by 90 days from the date of such downgrade,” the RBI circular said on Wednesday.


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