Mumbai

The Finance Industry Development Council (FIDC) has written to the Reserve Bank of India (RBI) seeking permission to restructure loans given by NBFCs in the wake of the deep Covid crisis.

The NBFC body in its letter to the RBI Governor said that the borrower accounts, which are 'standard' accounts as on March 31, 2021, may be allowed restructuring without any downgrade in asset classification, subject however to the lending NBFCs undertaking fresh credit assessment of the borrowing entity.

It requested the RBI to consider advising banks and financial institutions to allow one-time restructuring of loans given by them to small NBFCs only (NBFCs with total asset size of less than Rs 500 crores).

The FIDC further urged the central bank to increase the overall support outlay to AIFIs from Rs 50,000 crore to at least Rs 75,000 crore.

"While the existing allocation for other sectors may continue at their prescribed limits, the additional Rs 25,000 crores may be made available exclusively to medium and small NBFCs, through SIDBI for period of 3 years," it said.