there is a clear indication of the cash flow said rajkiran rai md ceo union bank there are safeguards to ensure that banks keep an eye on such loans they have to make an additional provision of 10 and also be prepared to classify them as nonperforming assets even if they miss out on one emiuntil now banks could not provide relief without classifying a borrower as a defaulter nonperforming asset or changing the owner now banks can restructure loans for existing owners of businesses bankers made it clear that this restructuring is not a giveaway promoting indiscipline among borrowers this scheme does not benefit defaulters and penalise those who have been diligent only those who have been paying in time until the covid lockdown will be eligible said samuel joseph jebaraj deputy md idbi bank he said that while businesses that have borrowed beyond their means can also apply if they have not defaulted they may not pass the test of viability and not be eligibleunder the new scheme banks have to decide on extending the restructuring scheme by december 2020 and restructuring must be implemented by march 2021 in respect of the restructured loans banks have to maintain 10 additional provisions there is an indirect pressure on minority lenders in a consortium to fall in line and sign the restructuring agreement as those not participating in restructuring must make additional provision of 20according to das the covid19 economic stress can potentially impact the longterm viability of a large number of firms otherwise having a good track record under the existing promoters due to their debt burden becoming disproportionate relative to their cash flow generation such widespread impact could impair the entire recovery process posing significant financial stability risks considering the above with the intent to facilitate a revival of real sector activities and mitigate the impact on the ultimate borrowers it has been decided to provide a window to implement a resolution plan for corporate without a change in ownership and individual loans said daswatch rbis onetime window for companies individuals to recast loans gives helping hand to india inc