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RBI Gives Guidelines To Banks For Poultry Industry

by 5m Editor
5 April 2006, at 12:00am

MUMBAI - Hit severely by the outbreak of avian influenza (bird flu) in some parts of the country Reserve Bank of India (RBI) today issued guidelines to the banks for extending several facilities to the poultry units financed by them. “Principal and interest due on working capital loans as also installments and interest on term loans which have fallen due for payment on/after the onset of bird flu, i.e February 1 and remaining unpaid may be converted into term loans,” a RBI release said. The converted loans could be recovered in installments based on projected future inflows over a period up to three years with an initial moratorium of up to one year. The release said that remaining portion of term loan could be rescheduled with a moratorium period up to one year depending upon the cash flow generating capacity of the unit. “Reschedulement or conversion may be completed on or before june 30. The rescheduled/converted loans may be treated as current dues. The borrower will be eligible for fresh need based finance,” RBI release said. <i>Source: Navhind Times</i>

5m Editor