Coronavirus Outbreak: RBI allows NBFCs to extend loans to delayed commercial realty by one year

The RBI on Friday allowed non-bank financial companies to extend the date for commencement of commercial operations (DCCO) for loans given to commercial real estate by additional one year without considering it as restructuring

Press Trust of India April 17, 2020 13:39:32 IST
Coronavirus Outbreak: RBI allows NBFCs to extend loans to delayed commercial realty by one year

Mumbai: The RBI on Friday allowed non-bank financial companies to extend the date for commencement of commercial operations (DCCO) for loans given to commercial real estate by additional one year without considering it as restructuring.

Coronavirus Outbreak RBI allows NBFCs to extend loans to delayed commercial realty by one year

Representational image. Reuters

Currently, RBI has permitted banks to extend the DCCO in respect of loans to commercial real estate projects delayed for reasons beyond the control of promoters by an additional one year, over and above the one-year extension permitted in the normal course, without treating the same as restructuring.

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“It has now been decided to extend a similar treatment to loans given by NBFCs to commercial real estate,” RBI Governor Shaktikanta Das said while addressing the media via video conference.

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The move will provide relief to non-banking financial companies (NBFCs) as well as the real estate sector, he said.

The governor also announced a slew of measures to support the economy which has been affected due to disruptions on account of COVID-19.

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