“Taking into account the severe impact of the global pandemic on the economy, the decision by the Reserve Bank of India to permit one-time restructuring of loans is a step in the right direction. The announcement will provide relief and help ease the burden of both financial institutions and corporates, thereby ensuring banks’ ability to maintain quality of assets and minimise risk. The fresh assessment of the impact of COVID-19 on the economy may benefit banks in keeping reported bad loans in check.”
