The Reserve Bank of India (RBI) has announced additional Covid-19 relief measures for real estate service providers amid lockdowns announced by states due to the second wave of Covid-19.
RBI has recognised difficulties faced by individual, small and medium enterprises due to the lockdown, and provided ‘Resolution 2.0’ measures for restructuring loans to small borrowers up to Rs 25 crore.
The apex bank’s announcements are aimed to provide relief to real estate-linked small and medium (SME) players, especially contractors and suppliers of input material for the sector.
Due to the recent lockdown restrictions in various states, cash flows have been partially impacted. The working capital review will also help these stakeholders to tide over their liquidity issues, experts said.
To mitigate the pandemic-related stress, initiatives like special long-term repo operations for small finance banks are announced for on-lending to individual borrowers. This may help the smaller entrepreneurs, capital markets and Investment Services (India).
Resolution Framework 2.0, under which individuals and small businesses and Ministry of Micro, Small and Medium Enterprises (MSMEs) are having exposure up to Rs 25 crore, can opt for loan restructuring if they had not availed the earlier scheme, said RBI.
Also read: Govt provides relief in GST timelines to businesses hit by Covid-19
Also read: Covid-19 second wave: State govts offer assistance to construction workers
