Reserve Bank of India (RBI) vide circular dated August 06, 2020, has provided framework for implementation of resolution plans for addressing the economic fallout due to COVID-19 pandemic which has led to significant financial stress to customers. In-line with the framework and regulatory guidelines the bank has framed its policy for one-time restructuring of loan/s of wholesale and retail customers.

Customers who are financially impacted in the form of reduction/loss of income or cash flows are eligible for review in line with the Board approved policies of the Bank. Please be informed that decision of restructuring the account by the Bank would be subject to internal evaluation and in compliance with relevant RBI guidelines.

The following types of personal loans are eligible for restructuring under this framework: 

1. Consumer credit, which refers to the loans given to individuals, consisting of;
   1. Personal Loans (excluding loans for business purpose)
   2. Credit card receivables
   3. Auto loans (excluding commercial vehicle loans) 
   4. Personal loans secured by gold, gold jewelry, immovable property, fixed deposits (including FCNR(B)), shares and bonds, etc., (other than for business/commercial purposes) 
   5. Loans given for other consumption purposes (e.g., social ceremonies, etc.)
2. Education loans
3. Home loans

The following conditions have to be met in order to be evaluated/assessed under this framework: 

1. You are financially impacted in the form of reduction/loss of income or cash flows on account of COVID-19. 
2. Your account was standard and not in default for more than 30 days with the Bank as on March 01, 2020. 
3. The reference date for the loan outstanding, considered for resolution will be  will be March 01, 2020 
4. Resolution under this framework should be invoked not later than December 31, 2020, where date of invocation would be the date on which both the customer and the Bank agree to proceed with a resolution plan and the same must be implemented within 90 days from the date of invocation.

For MSME, the restructuring shall be in accordance to the RBI circular on “Micro, Small and Medium Enterprises (MSME) sector – Restructuring of Advances” in-order to be evaluated under the restructuring framework for MSME, following criteria must be adhered to:

1. You are MSME as defined in the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. 
2. Hold a valid Udyam registration certificate. You can register your MSME on Udyam portal: 
   https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm 
3. Your aggregate exposure, including non-fund based facilities, of banks and NBFCs should not exceed Rs. 25 crore as on March 01, 2020. 
4. Your account was ‘standard asset’ i.e. not classified as NPA as on March 01, 2020. 
5. Your entity is GST-registered on the date of implementation of the restructuring (unless exempt from GST-registration).
6. The restructuring of the account has to be implemented by March 31, 2021.

Eligible customers desiring to restructure their accounts can write to the bank’s customer care ID: customercare@rblbank.com from their registered email ID by mentioning their loan account number with the subject: Restructuring. Alternatively, you can call on our 24 x 7 customer service helpline no, 022 6115 6300 or you can click here and fill the request form.
 

Yes, before granting you the restructuring of your loan/facility, the bank would conduct its assessment. The financial stress covering reduction of income and its impact on the customer shall be assessed basis documents/information submitted by the customer and the viability to pay the restructured EMIs before approving the restructuring of your loan/facility.

We may ask for documents seeking details with respect to current status of your employment or business. This may include but not limited to salary slips and bank statement for Salaried customers and Bank statement, GST returns, Income tax returns, Udyam certificate, etc. for Self-employed borrowers of the Bank.

Processing fee may be levied in case you choose to restructure your loan/facility.

All borrowers/co-borrowers of the original loan are required to agree and sign on any changes in the loan structure including the restructuring agreement. 

The credit reporting in respect of borrowers where the resolution plan is implemented under this framework shall reflect the “restructured” status of the account. As the regulatory guidelines require reporting of restructuring at borrower level to the credit bureaus and hence all facilities/loans of the borrower with the bank will be classified and reported as “Restructured” even if the borrower has taken restructuring for only one loan. The credit history of the borrowers will consequently be governed by the respective policies of the credit information companies as applicable to accounts that are restructured.
 

No. The accounts already restructured under the earlier circulars issued by RBI on January 01, 2019 and February 11, 2020 shall not be eligible for restructuring under these guidelines. 
 

The following types of loans are not eligible for restructuring: 

1. Loans to individuals/entities for agricultural purpose/farm credit
2. Loans to agricultural societies
3. Exposures to financial service providers
4. Exposures to Central and State Governments; Local Government bodies
5. Exposures to housing finance companies which have already been rescheduled
6. Loans given to employees of RBL Bank