RBI has extended the deadline for non-banking financial

Solution

Reserve Bank of India (RBI) has extended the deadline for non-banking financial companies (NBFCs) to comply with new Non-Performing Assets (NPAs) classification norms to September 2022 from the earlier deadline of March 2022. As per the ‘Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances – Clarifications’, which was issued by RBI on November 15, 2021, the loan accounts that are classified as NPAs could be upgraded as ‘standard’ assets only if entire arrears of interest and principal are paid by the borrower.