Page 532 - ES 2020-21_Volume-1-2 [28-01-21]

Monetary Management and Financial Intermediation 159

Date of Announcement Measures Announced

April 29, 2020 All regulatory returns required to be submitted by the Scheduled
Commercial Banks, Payment Banks and Local Area Banks, AIFIs, and
Cooperative Banks to the Department of Regulation were permitted to be
submitted with a delay of upto 30 days from the due date. The extension
was applicable to regulatory returns required to be submitted upto June 30,
2020.

May 23, 2020 (i) Some measures were extended.Lending institutions were
permitted to grant moratorium and deferment by another three months
i.e. i.e. from June 1, 2020 to August 31, 2020. Lending institutions were
permitted, at their discretion, to convert the accumulated interest in case
of CC/OD for the deferment period up to August 31, 2020, into a funded
interest term loan (FITL) which shall be repayable not later than March 31,
2021. In respect of C/OD facilities facing stress on account of the pandemic,
lending institutions were permitted to recalculate the drawing power by
reducing the margins till August 31, 2020 as a one-time measure such that
the margins are restored by March 31, 2021, and / or view the working
capital sanctioned limits upto March 31, 2021, based on a reassessment of
the working capital cycle.
(ii) Increased a bank’s exposure to a group of connected
counterparties from 25 per cent to 30 per cent of the eligible capital base of
the bank, as a one-time measure. The increased limit will be applicable up
to June 30, 2021.
(iii) Increased the maximum permissible period of pre-
shipment and post-shipment export credit sanctioned by banks from one
year to 15 months, for disbursements made upto July 31, 2020;
(iv) Extension of timeline by excluding the period from
March 1, 2020 to August 31, 2020 from the calculation of review period
and resolution for accounts in review period and under resolution without
additional provisions as on March 01, 2020 respectively.

June 21, 2020 Credit facilities (Guaranteed Emergency Credit Line) extended under
the Emergency Credit Line Guarantee Scheme by lending institutions
were permitted to be assigned zero risk weight to the extent of guarantee
coverage.

July 01, 2020 (i) Released Eligibility criteria for NBFCs/HFCs under
the Scheme to improve the liquidity position of NBFCs/HFCs through a
Special Purpose Vehicle (SPV).
(ii) Banks were permitted to reckon the funds infused by the
promoters in their MSME units through loans availed under the Credit
Guarantee Scheme for Subordinate Debt for stressed MSMEs issued by the
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
as equity/quasi equity from the promoters for debt-equity computation.