Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday announced a number of schemes that are not only aimed at providing relief to the ailing economy but will also be used to fight the pandemic going forward. However, no moratorium was announced as was being expected.

The Governor in his surprise address to the media said that individual borrowers and small businesses having aggregate exposure of upto Rs 25 crore shall be eligible for having their loans restructured under the new resolution framework.

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Welcoming the move, Ramesh Iyer, VC & MD of M&M Financial Services said that this will allow 10-15 percent of the book to be restructured.

“I think the school bus operators, the tourist operators and aggregators – these are the kind of customers who would need this restructuring. The agri side is doing well and I don’t think they would need restructuring. So, I would think about 10-15 percent of the book will opt for it because these are segments who are currently under pressure from their earnings,” he said in an interview to CNBC-TV18.

Iyer also said that the first 20 days of April were good in terms of collections and disbursement. “Collection wise, let us say a pre-COVID April was to be considered with this April, it would be at about 80 percent level,” he said.

He said that the flow of money into NBFCs is positive and expects demand to pick up post COVID.

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(Edited by : Aditi Gautam)