RBI spares banks from classifying as NPAs for two more years

Reserve Bank of India allowed banks to extend the deadline for Date of Commencement of Commercial Operations (DCCO) of stalled projects, which have been taken over by new promoters, by upto two years. The RBI said that revisions of the date of DCCO and the consequential shift in the repayment schedule for two years or shorter duration will not be treated as restructuring. RBI said new promoters should own at least 51% of the paid up equity capital in the acquired project. If the new promoter is a non-resident and in sectors where the ceiling on foreign investment is less than 51%, the new promoter should own at least 26% of the paid up equity capital or upto the applicable foreign investment limit, whichever is higher.