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Demonetisation: RBI gives additional 60 days to repay loans

The new decision is applicable to loans payable between November 1 and December 31

Close to two weeks into the demonetisation exercise, the Reserve Bank of India on Monday provided an additional 60 days for the repayment of housing, car, farm and other loans worth up to Rs. 1 crore.

According to the RBI notification, the new decision is applicable to loans payable between November 1 and December 31, PTI reported.

“… it has been decided to provide an additional 60 days beyond what is applicable for the concerned regulated entity for recognition of a loan account as substandard,” the notification read.

Meanwhile, the Reserve Bank of India today announced banks across the country have received Rs 5.45 trillion ($79.96 billion) of 500 and 1000 rupee notes from Nov. 10-18 after the demonetisation announcement.

The total amount includes 5.12 trillion rupees ($75.1 billion) in bank deposits and 33,000 crore rupees ($ 4.85 billion) in exchange of old high value notes with new ones, a statement from RBI said.

RBI also said the public have withdrawn, during this period, 1.03 trillion rupees from their accounts either over the counter or through ATMs.

Reports also said the RBI has also eased cash withdrawal rules for businesses, allowing overdraft and cash credit account holders to withdraw up to Rs. 50,000 in a week now. The central bank earlier permitted only current account holders to withdraw Rs. 50,000 in a week.

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