Published 14:10 IST, August 29th 2020
Financial experts express mixed feelings on RBI's restructuring package
The loan restructuring package announced by the Reserve Bank of India evoked mixed reactions from experts in the financial sector, as some found it helpful for the tourism industry, while others described the guidelines of the scheme as "restrictive" to the NBFCs.
Advertisement
loan restructuring pack anunced by Reserve Bank of India evoked mixed reactions from experts in financial sector, as some found it helpful for tourism industry, while ors described guidelines of scheme as "restrictive" to NBFCs.
Tourism Finance Corporation of India MD and CEO Anirban Chakraborty said hotels and hospitality sector are under MSME segment in loan restructuring framework of RBI. emergency credit line extended to borrowers is a good measure to help sector sustain for next two years, he said at a webinar organised by Enqube Collaborations on Friday.
Advertisement
Chakraborty said 70 per cent of TFCI's portfolio is with MSME sector and this credit line with government guarantee will help industry. According to him, tourism and hospitality, one of worst-hit sectors due to COVID-19 pandemic, is expected to bounce back in third or fourth quarter of current fiscal. Srei Infrastructure Finance vice chairman Sunil Karia said RBI restructuring pack is somewhat "restrictive and t a workable solution".
"I have a contrarian view of RBI guidelines. se are restrictive and t workable. guidelines should have been left to lenders and borrowers, which would have been better," he said.
Regarding NBFCs, Karia said this sector is deprived of availing of moratorium on repayments of loans taken from banks.
Advertisement
"Though we are extending moratorium to our customers, we are t getting same benefit from banks so re is a mismatch on liability side," he ded.
Union Bank of India Executive Director B Mishra said that COVID-19 has led to behavioural changes on part of government, regulator, bankers and borrowers.
14:10 IST, August 29th 2020