Background:
The Reserve Bank issued COVID-19 Regulatory Package to Banks vide circular dated March 27, 2020, and subsequent circulars dated April 17, 2020 and May 23, 2020 where inter alia certain regulatory measures were announced to mitigate the burden of debt servicing brought about by disruptions on account of COVID-19 pandemic and to ensure the continuity of viable businesses. In this regard, RBL Bank has formulated this special Policy.

Eligibility:
All corporate clients are eligible for relief under this Policy, except those declared as ‘Fraud” or Wilful defaulters. Clients desirous of availing relief under this Policy, are requested to get in touch with their Relationship Manager.

Relief Permitted & Conditions:
Only credit facilities outstanding as on March 01, 2020 are eligible for relief. Relief (deferment) can only be granted for dues falling due between March 01, 2020 and August 31, 2020. Payments due prior to March 01, 2020 must be paid immediately and no relief can be granted for such facilities.

With respect to Term Loans, moratorium of up to 3 months may be granted on ‘installments’ to cover principal and interest payments due between March 01, 2020 and August 31, 2020. No deferment of dues payable prior to March 01, 2020 is permitted under these guidelines.

Interest will continue to accrue on the outstanding amount. The term instalments has been defined by RBI to includes all categories of loans with a fixed or definite repayment schedule, including principal and interest payments, bullet and amortizing payments, including EMIs and credit card dues.

In respect of working capital facilities such as cash credit/overdraft, the recovery of interest applied during the period March 01, 2020 to August 31, 2020 may be deferred. The Bank will have the discretion to recover this immediately after the completion of this period, or convert this into a Funded Interest Term Loan and collect this by March 31, 2021.

In case of CC/OD accounts, the Drawing Power maybe recomputed by reducing margins and/or by reassessing the working capital cycle. This relief shall be available up to March 31, 2021, subject to bank’s assessment.

The relief will be granted after due assessment by the Bank in accordance with RBI guidelines.

SMA-CRILC Reporting/Credit Bureau Reporting/IRAC Classification:
Wherever deferment of due dates has been accepted, the deferred dates would become the revised due dates going forward, and hence SMA reporting, Credit Bureau reporting, and IRAC classification (Standard/NPA) shall be done in accordance.

Further Details:
In case of further queries, kindly contact your Relationship Manager.