December 29, 2016 6:44 AM

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Provide borrowers 90 days more to repay loans: RBI asks lenders

The Reserve Bank of India (RBI) has asked lenders to provide borrowers 90 days for repayment of housing, car, farm and other loans worth up to 1 crore rupees, saying that the dispensation will apply to dues payable between 1st of last month and 31st of this month. In a notification, RBI said, on a review, it has been decided to provide another 30 days over and above the existing 60 days. So, borrowers together get 90 days from getting the account classified under non-performing asset (NPA) category. The notification said, It said, running working capital accounts or crop loans with the sanctioned limit of 1 crore rupees or less would be eligible for this benefit.Last month, the RBI had provided additional 60 days for repayment of loans worth up to Rs 1 crore. Separately, the central bank came out this special dispensation for farm loan earlier this week.

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