The Reserve Bank of India on Friday requested the banks and other lenders to inform the accounts restructured because of coronavirus individually to credit bureaus. Lenders must make required alterations to their system and intimate it to credit bureaus before two months, the banking regulator announced.
All commercial banks which includes small finance banks, local area banks and regional rural banks, primary (urban) co-operative banks/state co-operative banks/district central co-operative banks, India Financial Institutions (Exim Bank, NABARD, NHB and SIDBI) and non-banking financial companies (including housing finance companies) were seeked to inform the credit bureaus about restructuring the accounts.
The regulator altered the format to incorporate the restructuring of accounts because of COVID-19.
For consumer bureau, the label of the field ‘written off and settled status’ is changed as ‘Credit Facility Status’ and it will also have a new catalogue value, viz., ‘restructured due to COVID-19’, RBI said.
It also added that, for the commercial bureau, the existing field ‘Major reasons for restructuring’ will have a new catalogue value, viz., ‘restructured due to COVID-19’.
The existing field ‘account status’ will have a new catalogue value, viz., ‘restructured due to COVID-19′ for MFI bureau.