The Reserve Bank of India (RBI) on Wednesday has asked lenders to provide additional 90 days to borrowers for repayment of loans in view of demonetisation. Last month the repayment period was extended to 60 days and after the current extension, borrowers will now get additional 30 days to repay the loan.
According to a report published in Business Standard, this relief applies to dues payable between November 1 and December 31.
The new loan relaxation will apply for banks, non-banking finance companies and housing finance companies, primary agriculture cooperatives, state cooperative banks and district central cooperative banks.
RBI had received requests that small borrowers could not pay the loan in the pre-defined time limit due the cash crunch in the economy after demonetisation, so they must get more time to repay.