Recent updates from the Reserve Bank of India
Published on 15th Jun 2020
The Reserve Bank of India (“RBI”) has issued various relief measures in response to the COVID-19 pandemic on May 23, 2020.
The latest measures (inter alia) allow lending institutions to extend the moratorium on term loan instalments and defer interest on working capital facilities for a period of 3 months, from June 1, 2020 to August 31, 2020. In order to ease working capital financing, lending institutions have been permitted to recalculate the ‘drawing power’ by reducing the margins till August 31, 2020 and reassess the working capital cycle of a borrowing entity up to an extended period till 31 March 2021.
This PDF was originally published by our relationship firm BTG Legal, the legal adviser to Osborne Clarke’s clients in India.