Loan borrowers alert! RBI allows lenders to do this

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a man wearing a suit and tie standing in front of a door

© Provided by Zee Business

Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday, during the Monetary Policy Committee press conference, made a big announcement pertaining to restructuring of loans of corporate, individual borrowers. RBI has allowed lenders to provide window to restructure loans of corporate, individual borrowers to ease COVID-19 impact.

RBI Governor Shaktikanta Das said, “The disruptions caused by COVID-19 have led to heightened financial stress for borrowers across the board. A large number of firms that otherwise maintain a good track record under existing promoters face the challenge of their debt burden becoming disproportionate, relative to their cash flow generation abilities. This can potentially impact their long-term viability and pose significant financial stability risks if it becomes widespread.”

Further, Das said, “Accordingly, it has been decided to provide a window under the June 7th Prudential Framework to enable lenders to implement a resolution plan in respect

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3 Points Parents Should Keep in Mind

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Kids don’t have incomes, but it can still make financial sense to insure their lives. Before you buy a policy, though, consider a few key aspects of the choice in children’s life insurance. Getting a life insurance policy for kids doesn’t suit every family. Yours might be so well off as not to need such protection, or might prefer to use the money you’d pay in premiums to help pay your kids’ college bills, say, or provide a cash gift to them at a certain age. For others, though, this coverage can provide peace of mind and protection against the financial costs of losing a child, which would be a burden to cover. I’m one of those parents. For me, the compelling reasons to buy life insurance on my three girls included the desire to protect against the loss of my own income, to pay funeral costs, and to

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More businesses will tap Fed loan programme if economy worsens, Rosengren says

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Eric S. Rosengren wearing a suit and tie: FILE PHOTO: The Federal Reserve Bank of Boston's President and CEO Eric S. Rosengren speaks in New York

© Reuters/Keith Bedford
FILE PHOTO: The Federal Reserve Bank of Boston’s President and CEO Eric S. Rosengren speaks in New York

By Jonnelle Marte

(Reuters) – A key Federal Reserve official told a congressional watchdog on Friday that participation in a $600 billion (460 billion pounds) loan programme meant to carry small and medium-sized firms through the coronavirus crisis would expand rapidly if the pandemic or economy worsened.

American businesses have tapped only a fraction of the funds available through the Main Street Lending Program launched by the U.S. central bank last month, spurring criticism the program was too restrictive and set up too late to help employers.

“Should the pandemic and the economy worsen, or financial institutions experience larger-than-expected loan losses and depletion of capital – all things we hope do not happen – then I would expect interest in using this program to expand more rapidly,” Boston Fed

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