Finance minister Nirmala Sitharaman on Thursday asked banks and NBFCs to roll out their loan restructuring schemes for Covid-19 related stress by September 15.

“During her interaction, the finance minister focused on lenders immediately putting in place a board-approved policy for resolution, identifying eligible borrowers, and reaching out to them. Quick implementation of a sustained resolution plan by lenders for the revival of every viable business,” the finance ministry said in a statement.

During the meeting, the minister impressed upon the lenders that borrowers must be given support and Covid-19 related distress must not impact the lenders’ assessment of their creditworthiness, an official statement said.

The six-month moratorium on payment of EMIs ended on August 31.

Last month, RBI governor Shaktikanta Das had said a resolution framework for a loan restructuring scheme for all types of borrowers — corporate, MSME and personal loan segments — will be finalised by September 6. Restructuring some loans will support economic recovery and help businesses tide themselves over the crisis.

During the three-hour meeting, the statement said, the finance minister asked lenders to identify eligible borrowers and reaching out to them. She stressed quick implementation of a sustained resolution plan for the revival of every viable business.

Banks are in the process of getting a board-approved restructuring framework in line with the RBI’s framework and eligibility defined by the central bank in its notification on August 6.

The finance minister also emphasised that resolution schemes must be rolled out by lenders by September 15, 2020, and a sustained media campaign to create awareness be carried out thereafter, the statement said.

She advised lenders to ensure that regularly updated information on the resolution framework is uploaded on their websites in Hindi, English and regional languages, and also circulated to their offices and branches.

The bankers assured the finance minister that they were ready with their resolution policies and had started identifying and reaching out to eligible borrowers. They promised to comply with the timelines stipulated by the RBI.

The ministry of finance is also in touch with the RBI to ensure that the lenders are guided in the resolution process.

The restructuring benefit can be availed by those whose account was standard on March 1 and defaults should not be over 30 days.

The K V Kamath committee is working on the recommendations on the financial parameters of the schemes.