COVID 19 - Rescheduling of Term loans

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• JI~ \tmflq .ful, fafllq1+1* 3Tt{ m ~ 01111• INSURANCE REGULATORY AND ir.iai DEVELOPMENT AUTHORITY OF INDIA ~ : 31$3TTdnr/Qq:,QU53{$n:fi"}f$3ITT'/3il$Qo-tc::M181/07/2020 7 ~ ' 2020 .:> REF: IRDA/F&I/CIR/INV/181/07/2020 7th July, 2020 q~q:ij CIRCULAR mfr" 41~cl-llcficfi3TT c);- 1f_qi"f_3f_ / The CEOs of all Insurers, .:> fcror: q;)fcg-19~ ~ c);- ~ c);- ~ * .:> Sub: COVID-19 - Rescheduling of Term Loans - Reg. ~ q~q:ij 31$3TTdnr/Q'"Cf)'C!s31$/"Bl3{$3ITT'/311$C!o-tC1~/085/04/2020 f°?;o1ifch<1 8 3-Ttrc>r, 2020 cflT ~ ~ 6, ~f!A ~~J-ilcfia'IJTT cfiT 31o-tJ-lkl cfr" 1T<fr ~ fcJ;- a- 1 cl-lT"tl, 2020 3ITT' 31 J:$, .:> 2020 c);- ~ ~ ~ ~ fcf;"~<if c);- ~aIaIo1 c);- fc;rv cfra,- ~ cflT "~' ~ °cfitl .:> ~ We refer to Circular IRDA/F&I/CIR/INV/085/04/2020 Dt. 8th Apr, 2020 in permitting Insurers to grant moratorium of three months towards payment of installments falling due between 1st Mar, 2020 and 31 st May, 2020. cfilfcts-19 c);- cflJTOT c>11ctis13o1 cfiT 3Wr ~ 3m- fa1,ia{ 3fq{Ttf cfiT t-<Tia, * ma ~ 3m- .:> ~1{Ji~ ~ ~ ~ ~ fa1t~rr. ~ q~q" ~ - : ~31$12019-201244.srm.3-ITT' ~ - ~ -~-71121 .04_04a12019-20 R;o-1ifcfia 23 J:$, 2020 c);- ~ *· ~ "3ftU1T c);- ~aIaIo1 .:> cfiT ~ ~ c);- ~ fa1J-o.1fc:lfu1a ~~r ~ ~ dl<l 6: .:> .:> In view of the extension of lockdown and continuing disruption on account of COVID-19 and in line with the RBl's directions issued vide Cir: No: RBl/2019-20/244 DOR. No.BP.BC.71/21.04.048/2019-20 Qt.23rd May, 2020, the following instructions are issued towards rescheduling of payments towards Term Loans: cfi". ~ "3ftU1T c);- ~ * ~')IJ-llcfi<1~3TT cfiT, Jio-tcl-lkl cfr" ~ 6 fcJ;- a- 1 ~. 2020 3ITT' .:> ~ 31 3fd1Tc=f, 2020 c);- ~ ~ ~ ~ fcf;"~(il c);- ~ d I <1 lo-I c);- ~ cfTa,- ~ cflT 3lfm:~ .:> ~ °cfit I W "3ftU1T c);- fi;r1! ~ ~ fl I~ oft 3ITT' ~N JrcTTU, mm=~ 3rcTTU c);- ~ .:> .:> q ~~ . ~ ~ ~aIaIo1 3rcTTU ~ cfra,- ~ cfcfi" 3WT ~ JllQdft I ' ~ .:> a. In Respect of term loans, Insurers are permitted to grant a moratorium of three months towards payment of installments falling due between 1st Jun, 2020 and 31st Aug, 2020. The repayment schedule for such loans and also the residual tenor will be shifted across the board by three months subsequent to the moratorium period. ~ ~ 'l'. 115/1, ~ ~ • .:ti•Ff><.1¥1'J:SI, ~-500 032, ~ I Survey No. 115/1, Financial District, Nanakramguda, Hyderabad-500 032, India 6) : +91-40-2020 4000 ~ : www.irdai.gov.in 6) : +91-40-2020 4000 Website : www.irdai.gov.in ~- VBT ~-3fcrtu ~ mra=r mcrci'r ;J[Ul1" ~ es1ch1l11-3-f~r q"{ m 3qfila ~ ~ tPTTI b. Interest shall continue to accrue on the outstanding portion of the term loans during such moratorium period. ar. 39{~ctc1 f..'t:::;r (ch") ~ 3-laRlR mcrci'r ;J[Ull", ~cr1cfi~ ~ ~ ~ "JT<ft" t, chT qfh1q\"n-i 1''1V ~ oJ " qJffch{UI, ~~rrfuc:, ~ ~ 3fir ~~rrfuc:, ~ wf).uft ~ 3mm" q"{ ~ oJ oJ ~ -511QJll 1 c. The asset classification of term loans which are granted relief as per point no. (a), above shall be determined on the basis of revised due dates and revised repayment schedule. u. m ~ ~J1c11cr1~ ~ ~-fl1~oft ~ ~ chT, C!crlti~C! ~ f).qWb1 ~ fi;t1[ oJ oJ 'i:lcF ~ J:lTcrlT -511 Q JI I I " d. The rescheduling of payments, including interest, will not qualify as a default for reporting of NPAs. s-. ~~J-J1chc1(1, 3ftUT ~ ~N 3fcrtu, ~ m m ~-rn. ~ amc=rr $,ll1R oJ oJ ~~urn chT t-<TTo, *mer~~ qr:;r 5tto1q;ab-rr chT 39{1cfa ~ ~ fi;t1[ oJ mgc;qm~ailfactll"R~I ' " e. Insurers shall frame Board approved policy for the above-mentioned reliefs to all eligible borrowers, by taking into account various factors including remaining tenure of loan, consortium or non-consortium lending, repayment capacity etc. "'c:f. f!J-Jqcff ~ qfr!l;,cfl mafT ~cicsi{ 2020 chT flJ-llCci QJ-ll61 ~ ft-cAf: Jt ~ ~ oJ ~ ~~J-l lchcirl ~ ~ ~ <Rat Jt mg c;cfRT ~ ailfa chT 3-icrl 91 c>lcrl ~ 6 I " ' " oJ f. Concurrent Auditor in their report for the quarter ending Sep 2020 shall confirm that the insurer has complied with the Board Approved policy in granting moratorium. ~ ~an=r ~ ~ ~ ~ ~ ~ JT<TT 61 " This is issued with the approval of the Competent Authority. (1:RT "Qa," -51.!.l~½irt N Jayasimhan) ~-~T I Ho -Investments