Mumbai: RBI has extended a roll-out of new bad loan norms for non-banking finance companies (NBFC) for up to six months.
Normally related to increasing NPA (non-performing assets) becomes standard by NBFC.
In November, RBI said new norms would be effective March 31, 2022, which has now been postponed until September.
According to Indian rating reports, bad loans for NBFC are likely to increase as far as one third because of new norms.
Previously, lenders would increase the account when the borrower returned to track with their installments.
New rules say that loans cannot be increased until all the money maturity is recovered.
RBI postes new bad loan rules for non-banks
