Rescheduling of Term Loans in the context of outbreak of Covid-19

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• JI~ 'llmftq '1rit1 f.lf.:,q1q¥ altt • ~1fuH01 01111• INSURANCE REGULATORY AND ir.lai DEVELOPMENT AUTHORITY OF INDIA ~ : ~3-ITTtnr~/QlpQU53-l$/~~3-TR"/}i1$Qa-tq')/085/04/2020 8 ~ 2020 REF: IRDA/F&I/CIR/INV /085/04/2020 8th April, 2020 CIRCULAR mfr ll(icHlcf,c·ktrr ~ ~ / The CEOs of all Insurers, fc:rc!m: q;)fcg-19 ~ ~ ~ ~ * li"l4ia>I ~ cf,T ~ .:, Sub: Rescheduling of Term Loans in the context of outbreak of Covid-19 ~ cf,)- cf,)fctg-19 ~ ~ ~ ~ * ll(icHlcf,c=t~JTT c;cfRT ~ ~ ~ li"illia>I - " ;{[UTT ~ tjc:h1c1"i ~ ~~ (cHl{C:i~llcH) ~ J:ITT"r ~ ~ 3~ll)Ji ~ ~ .:, .:, - 3,a:llicl~a-t t,TTCc, ~ 61 3-ll{c1"ill ~ ~ ~ J.i"llliei ;{[UTT ~ ~3TT cf,)- q:;u; .:, ~~ .:, ~ ™ ~ ~ ~r Ra1i<h 27 m"tt 2020 artr ~ 61 ~m .:, c;cfffi 3fci,3lcf ~ al" {"fr ~ ~ ~ fl cH fll i 3TT cf,)- t.""l!To, * 00- ~ c=fm - .:, .:, 3ii{<1"ill ~ ~ ~ ~ ~TT ~ 3fa=IBCT, J.i"llliei =-nrt- ~ tjc:h1c1"l ~ ~~ ™ . .:, ~ vii .:, ¢ ~ ~ * ~ c;cfRT ~J--a-tfc4ru1c=t ~~T aliT ~ ~ 6 : - .:, The Authority has received representations from industry associations seeking moratorium on repayment of term loans sanctioned by the Insurers, in the context of outbreak of Covid- 19 . RBI has issued directions dt. 27th March, 2020, providing certain moratorium to th e borrowers of Term Loans. Considering the cashflow problems faced by the borrowers and in line with the RBI directions, the following instructions on providing moratorium on repayment of term loans are hereby issued: cfl. ll(lcHl<hckm cf,)- J.i'>1£11a>I ~ ~ ~ * 1 m"tt 2020 ~ 31 cH'"$" 2020 ~ tm- ~ ~)crlqiJI fcl:;fcfi ~ 31a1a1a1 ~ cfra-t" ~ cf,T ~ ma=r ~ ~ fc;t-Q'- .:, .:, 3-ia-t cH fa t," ~ t I W ~ ~ fc;t-Q'- tj c:h1 Ji <hi 4 sticH ~ ~ 61" ~ ~ .:, .:, (~) cf,)- ~ ~ ~ 3q {ic1 cfra-t" ~ ~ fc;t-Q'- mfr @U ~ 3WT 3fc:rft:r ~ 311 Q a I I I a. In respect of term loans, insurers are permitted to grant a moratorium of three months towards payment of instalments falling due between 1st March, 2020 and 31st May, 2020. The repayment schedule for such loans and also the residu al tenor, will be shifted across the board by three months subsequent to the moratorium period. 1!H. 115/~ ~ -aia«ia 1'", ~<m-500 032, "17o I Survey No. 115/1, Financial District, Nanak~amg_uda, Hydera~ad-500 032, India 6) : +91-40-2020 4000 fflW : www.irda1.gov.in 6) : +91-40-2020 4000 Website • www.1rda1.gov.1n (9. ~ m cf:i'r Jrtm:~ 3-TcTTU c),- c;'Rra, 3cFc, .1-i~.llla) ~ c),- ~cfil<lll 3,~T ~ ~ CfiT 3qRJa ~ ~ ~I b. Interest shall continue to accrue on the outstanding portion of the term loans during such moratorium period. cfil~sf,J..l c);- 3TTtlR" ~ ~ "11QJII I 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. "Ef. ~ ~. ~ a I a 1cr11 CfiT ~ ~ Jt 1 ~a 41 (Q cr14~ Q) cf:i'r ~ ~ c);- ~ ~ ~ l,Fil "1ai c),- ~ 'qq, c),- ~ ~ ~ "SJTCci" crl'ffe ~ I ~ d. The rescheduling of payments, including interest, will not qualify as a default for the purpose of reporting of NPAs. 3-lcrlJ-TIRc=t a1~fc-l41 ~crllQJ) I ~ e. Insurers shall frame Board approved policies to extend above mentioned reliefs to all eligible borrowers. ~ - -HJ..lcl<ll ~-tRTa:fcfi" "-,la, 2020 cfiT ,HJ..llCc=t klJ.-1161 c),- ~ 3-fCrafr ftcnit ~ ~ ~ ~ ~ ~ fcfi' lSnJ..l 1cfia'1m a1" ~ 3-TcITTt lRJcrl" ~ ~ mg ~ Jtcr1roRa ~ ' ~ CfiT ~ ~ 6°1 f. Concurrent Auditors in their reports for the quarter ending June, 2020 shall confirm that the insurers have complied with the Board Approved policy in granting moratorium. ~ "-H"affi" ~ c),- 3-lcrl<R)c;crl ~ °"1lt'r ~ °"1Till 6°1 ~ This is issu ed with the approval of Competent Authority. / SN Jayasimhan)