[INDIA REAL ESTATE NEWS] Good morning everyone I am Rumi Dhar from Kama Group.|
Here I have important INDIA real estate news to share with you which is as mention under.
The Reserve Bank of India (RBI) has permitted banks to restructure loans to real estate
companies on the basis of the project rather than the developer. It has also indicated that
banks can restructure loans drawn by a borrower during the current fiscal, provided the
account was classified as ‘standard’ (not overdue for more than 30 days) as on March 1, 2020.
These clarifications were issued by the central bank in a set of frequently asked questions
(FAQs) on the resolution framework for Covid-related stress announced last month. On real
estate, the RBI said, “Only in respect of borrowers belonging to real estate sector, and have
both residential and commercial real estate business, the prescribed thresholds for the
financial parameters may be applied at the project level.”
The RBI also cleared the confusion on whether only that loan which was outstanding as on
March 1, 2020 is available for resolution. It said the March 1 deadline is for determining
eligibility, whereas the actual loan that may be considered for resolution will be the one
that is outstanding as on the date of invocation of the resolution framework.
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Have a nice day