Nod for realty loan recast sans ‘bad’ tag

The Reserve Bank of India (RBI) has said banks will be allowed to recast debt of loans extended for commercial real estate (CRE) without classifying the loan as non-performing if the revised date of commencement of commercial operations (DCCO) falls within the period of one year from the original DCCO stipulated at the time of financial closure.

In the case of CRE projects delayed for reasons beyond the control of promoters, banks are allowed to restructure the loans by revision of DCCO up to another one year (beyond the one-year mentioned above). “Banks will have to ensure that the revised repayment schedule is extended only by a period equal to or shorter than the extension in DCCO,” said the regulator.

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