Finance InFocus

RBI Extended Deadline for NBFCs to Adhere New NPA Norms

Earlier the regulator had set March 31 deadline for non-bank lenders to upgrade NPAs only after all arrears and principal dues are paid.

SMEStreet Edit Desk

18 Feb 2022 04:15 IST

New Update

The Reserve Bank of India extended the timeline by six months for Non-Banking Financial Companies to adhere to the new NPA recognition norms.

Earlier the regulator had set March 31 deadline for non-bank lenders to upgrade NPAs only after all arrears and principal dues are paid.

It said that NBFCs will have time till September 30 to put in place the necessary systems to implement this provision.

The RBI also clarified that loans classified as NPA will be upgraded to standard category only if all dues are paid.