Chaudhry said that the bank has received restructuring requests from both corporate and retail borrowers, and is presently formulating a framework under which such cases will be resolved.
Similar feedback was given by the Rajiv Mehrishi panel, whose report is yet to be made public, the official added.
Solicitor General Tushar Mehta submitted before the top court that he will endeavour to circulate affidavit by Thursday and the matter can be heard on Monday.
It appears that the Union Ministry of Finance ran into a brick wall. Just like its smooth arrival, the six-month loan moratorium was to exit making no more noise than a shadow.
The apex court extended its previous order on loan moratorium, saying accounts that have not been declared NPAs as on August 31 cannot be declared as such until further notice.
RBI has however come out with a scheme which provides for extension of moratorium for two years to certain stressed borrowers, the Centre had informed the top court.
The minister urged lenders to immediately put in place a board-approved policy for resolution at the review meeting with heads of scheduled commercial banks and NBFCs through video conferencing.
Interest on the loans will keep getting accrued, but a borrower will not be tagged as a defaulter for non-payment.
Come August 31 and the six-month blanket moratorium period to provide relief to borrowers in view of Covid-19 pandemic will be over.
The Reserve Bank of India (RBI) should extend the loan moratorium period for six more months, the DMK said on Sunday.
Sources said that it was only a temporary reprieve to borrowers adding that a longer moratorium period exceeding six months can impact their credit behaviour.
The court's observation came after Solicitor General Tushar Mehta referred to the RBI's affidavit in the matter, and said the banking institutions are also distressed.
The court’s observation came after Solicitor General Tushar Mehta referred to the RBI’s affidavit, and said the banking institutions are also distressed.
This was decided with the aim of restricting participation from Chinese companies in sensitive public projects.