The Reserve Bank of India will come out with new guidelines on "5/25 rule" for restructuring of loans to existing projects classified as standard assets.
According to RBI Deputy Governor SS Mundra the new guidelines will be in place over the next "few days".
"The new 5/25 rule for restructuring loans for existing projects will be in place within a few days," he told media persons, on the sidelines of an interactive session organised by the Confederation of Indian Industry (CII).
The 5/25 rule currently applies only for new infrastructure projects.
Hints at Rate Cut
Hinting at a possible softening of interest rates in the coming days, Mundra said the possibility could be explored if oil prices remain low, softening of food prices and so on.
"In the latest monetary policy it has been indicated that we at this point of time (are) where deflation is quite encouraging. Of course, it has been supported by global factors, oil prices are low, commodity prices are low, food prices have also softened from what they were before. So that is why we indicated that if all of these remain same, then there will be room for softening of policy stance," he added.