Page 533 - ES 2020-21_Volume-1-2 [28-01-21]

160 Economic Survey 2020-21 Volume 1

Date of Announcement Measures Announced

August 06, 2020 (i) A window is provided under the Prudential Framework
to enable the lenders to implement a resolution plan in respect of eligible
corporate exposures without change in ownership, and personal loans, while
classifying such exposures as Standard, subject to specified conditions;

(ii) Increased the permissible loan to value ratio (LTV) for
loans against pledge of gold ornaments and jewellery for non-agricultural
purposes from 75 per cent to 90 per cent;
(iii) Extended the one-time restructuring of MSME advances
for accounts classified as ‘standard’ as on March 01, 2020 and does not
exceed Rs 25 crore.

September 07, 2020 Based on the recommendations of the Expert Committee, Lending
institutions are required to consider five key ratios – Total Outside
Liabilities/Adjusted Tangible Net Worth (TOL/ATNW), Total Debt /
EBITDA, Current Ratio, Debt Service Coverage Ratio (DSCR), Average
Debt Service Coverage Ratio (ADSCR) – and the sector-specific thresholds
for each while preparing the financial assumptions in respect of resolution
plans. The thresholds for 26 sectors, as recommended by the Expert
Committee, were notified whereas the lending institutions were advised to
make their own internal assessments in respect of other sectors.

September 29, 2020 The implementation of the last tranche of 0.625 per cent of Capital
Conservation Buffer (CCB) was deferred from September 30, 2020 to April
1, 2021. The implementation of NSFR guidelines, which was to come into
effect from October 1, 2020 onwards was deferred by a further period of six
months. These guidelines shall now come into effect from April 1, 2021.

October 16, 2020 The celling for LTV ratios for housing loans sanctioned by banks on or
after October 16, 2020 till March 31, 2022 was increased to 90 per cent.
October 26, 2020 Reserve Bank advised the lending institutions about the Scheme announced
by Government of India for grant of ex-gratia payment of difference
between compound interest and simple interest for six months to borrowers
in specified loan accounts (1.3.2020 to 31.8.2020) (the ‘Scheme’) on
October 23, 2020.