The Central Bank has extended the deadline to seek extended debt moratorium from Non-Bank Financial Institutions (NBFIs) for business and individuals impacted by COVID-19 till 10 December.
The earlier deadline for submission of requests was 25 November.
Central Bank said NBFIs are required to finalise the decision and communicate the decision (grant/deny) in writing to the applicant within 45 days of submitting the request.
As a new requirement, the Central Bank has also stated that all chief executive officers and compliance officers are responsible to lay down the procedure to be followed in granting the relief measures and instruct the branch level staff accordingly.
In early November, the Central Bank announced the extension of debt moratorium on both capital and interest to COVID-19-impacted clients of NBFIs by a further six months from 1 October.
Eligible credit facilities include term loans, leasing facilities, pawning, and credit facilities similar to overdrafts, trade finance or any other credit facilities, which were in the performing category as at 31 March or at a later date.
Eligible borrowers qualifying for relief include businesses, proprietors and individuals engaged in tourism; direct and indirect export-related businesses – including apparel, IT, tea, spices, plantation, logistic suppliers and any other sectors impacted by work disruption and local and overseas lockdowns owing to the COVID-19 pandemic; SMEs with an annual turnover below Rs. 1 billion and individuals engaged in business sectors, such as manufacturing, non-financial services, agriculture, construction, trading as well as self-employment businesses and individuals who have lost their jobs or income due to COVID-19.
A similar extension of debt moratorium is available for customers of licensed commercial banks with the deadline for submission of requests expiring today (30 November 2020).
(FT)