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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Asset Classification and Income Recognition following the expiry of Covid-19 regulatory package

07-Apr-2021 | RBI/2021-2022/17 DOR.STR.REC.4/21.04.048/2021-22

The Hon?ble Supreme Court of India has pronounced its judgement in the matter of Small Scale Industrial Manufacturers Association vs UOI & Ors. and other connected matters on March 23, 2021. In this connection, it is advised that all lending institutions shall immediately put in place a Board-approved policy to refund/adjust the ?interest on interest? charged to the borrowers during the moratorium period, i.e. March 1, 2020 to August 31, 2020 in conformity with the above judgement. In order to ensure that the above judgement is implemented uniformly in letter and spirit by all lending institutions, methodology for calculation of the amount to be refunded/adjusted for different facilities shall be finalised by the Indian Banks Association (IBA) in consultation with other industry participants/bodies, which shall be adopted by all lending institutions.

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