The Reserve Bank of India on 23rd May 2020 has given a temporary relaxation to lenders on the Review Period as well as a timeline for resolution of stressed assets under its Covid-19 regulatory package.
RBI has decided that in respect of accounts that were within the Review Period as on March 01, 2020, the period from March 01, 2020, to August 31, 2020 shall be excluded from the calculation of the 30-day timeline for the Review Period. In respect of all such accounts, the residual Review Period shall resume from 1st September 2020, upon expiry of which the lenders shall have the usual 180 days for resolution.
Further in respect of accounts where the Review Period was over, but the 180-day resolution period had not expired as on March 1, 2020, the timeline for resolution shall get extended by 180 days from the date on which the 180-day period was originally set to expire.
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