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Government Debt Relief Scheme
January 5 , 2025
2 days
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- RBI has laid down some certain broad principles for lenders relating to their participation in Government Debt Relief Scheme (DRS).
- It is including sacrifice of interest and/or principal and loan account status.
- This comes in the backdrop of States announcing the DRS to provide relief to borrowers.
- This includes farmers during natural calamities or political parties promising the same for a targeted segment of borrowers in the run up to elections.
- Any waiver of accrued but unrealised interest and/ or sacrifice of principal will be treated as a compromise settlement.
- It would be attracting usual provisioning and asset classification norms.
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