Mumbai: The Reserve Bank of India on Monday relaxed rules for classifying bad loans for small borrowers saying they may need more time to repay their loan dues after the government withdrew higher-value bank notes.
Banks and other financiers will get an additional 60 days for recognising certain loans of up to 10 million rupees ($146,800) as substandard, the RBI said in a notification.
The relaxation will apply to dues payable between Nov. 1 and Dec. 31, it said.
The RBI also said banks have received 5.45 trillion rupees ($79.96 billion) of 500 and 1000 rupee notes from Nov. 10-18 after the government decided to withdraw high value bills to unearth billions of dollars worth of "black money".
The total amount includes 5.12 trillion rupees of deposits and 330 billion rupees as exchange of old notes with new ones.