Photo of Rahul Maheshwari

Associate in Projects and Project Finance Practice team at the Mumbai office of Cyril Amarchand Mangaldas. Rahul advises on project financing matters across sectors including road sectors and renewable energy sector and other structured financing transactions. He can be reached at rahul.maheshwari@cyrilshroff.com

Asset Classification - Be-hold

With the outbreak of the COVID-19 pandemic and the consequential countrywide lockdown, economic activities of almost all corporates, except those falling under essential services, have witnessed an unprecedented slowdown. As a result, cashflows and debt servicing capabilities of most borrowers have been seriously impacted, necessitating the Reserve Bank of India (“RBI”) to intervene and introduce a regulatory framework, enabling lenders to provide much needed relief to their borrowers.

This blog analyses the relaxation of the asset classification norms to be followed by a bank, with respect to a term loan[1] on account of the measures introduced by the RBI on March 27 and April 17, 2020 and related judicial pronouncements.
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