Mumbai, Feb 12: The high-powered committee of public sector banks constituted under the leadership of Dena Bank chairman AG Joshi has suggested that loan classification in case of borrowers affected by the earthquake be frozen on an `as-is-where-is' basis till 31 March, 2003.The committee met in Ahmedabad on February 9 to discuss and evolve a variety of relief measures and concessions for the Gujarat victims. In regard to standard assets, no demand for recovery is to be made for two years.
With regard to loans not classified as standards assets, no penalties are to be levied in the event of non-receipt of repayment due during the next two years. Banks would charge a simple interest of 10 per cent per annum till 31 March 2003, and thereafter interest will be charged .
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