New Delhi: Complementing the RBI for announcing a Restructuring Framework for the stressed loans, the ASSOCHAM today said it expects the K.V. Kamath Committee to come up with liberal financial parameters and benchmarks for loan revamp eligibility. The chamber described the RBI decision to keep the policy rates unchanged on expected lines, even as continuance of the accommodative stance in the wake of economic impact of Covid-19 pandemic is welcome. ”The RBI has risen to the occasion by announcing a Restructuring Framework for the stressed borrowers, also helping lenders in the process. Maintaining the credit discipline, the RBI has notably not left discretions of financial parameters for eligibility to individual banks; by announcing a high level committee for deciding the rules of the game. The banker of the high reputation of Mr K V Kamath to be heading this committee gives a great comfort and reassurance that the financial parameters would be non-discriminatory and liberal enough, taking into account the hardship being faced by the borrowers across the spectrum,” ASSOCHAM Secretary General Mr Deepak Sood said. ASSOCHAM has been consistently advocating for a liberal loan restructuring without compromising the credit discipline. Mr Sood said, the RBI and the entire Monetary Policy Committee should be complimented for taking a holistic view of the domestic and global economy, in the backdrop of the once-in-a-century global health crisis. He said, the additional liquidity window of Rs 5,000 crore each for the Housing Finance Companies and the NABARD should provide some relief to the stressed sectors. ”Relaxation of the Loan-To-Value Ratio up to 90 per cent for the gold loans is a great relief for the households who are facing severe liquidity crunch due to loss of income, ” the ASSOCHAM Secretary General said. He said with the gold prices witnessing a sharp increase in the last few months, the households with precious assets can certainly get much higher loans against their gold pledges. Mr Sood said, inclusion of the Start Ups in the Priority Sector would result in reduced cost of borrowing for the budding entrepreneurs. Likewise, further measures on the MSME debt restructuring are much -needed and welcome features of the RBI policy announcement. He said, the policy goes much beyond tweaking of the policy rates and has dealt with some of the structural issues. Related comments

Stay updated with all the Latest Cuttack headlines here. For more exclusive & live news updates from all around India, stay connected with NYOOOZ.