A Positive step by Reserve Bank of India to pay heed to India Inc’s long pending demand of Onetime restructuring of loans without classifying them as NPAs, by setting up an expert committee steered by KV Kamath. Opening up the window for restructuring of loans to companies, individuals and MSME under mandated safeguards grants breather to the liquidity strapped industry. The Reserve Bank of India (RBI)’s Monetary Policy Committee (MPC) has kept the repo rate unchanged at 4 percent, amid rising inflationary pressure and a grim economic outlook. RBI Governor Shaktikanta Das said that the real GDP growth will remain negative in FY21. A flexible repayment scheme under the new resolution framework shall bring in the much-needed relief to resume operations smoothly. Additionally, liquidity of Rs 5,000crores announced to be infused in NHB will definitely aid the reeling sector to tide over the liquidity crisis.

(Moneycontrol)