HospitalityBiz India
Hotels FoodService Operations Ministry Associations Equipment Editorial HR Technology Technology Advisory Board Community
Follow us on Facebook Follow us on Twitter instagram
    Home > NewsTrack

FHRAI urges RBI to extend loan restructuring scheme to all hospitality players

Sunday, May 23, 2021, 16:22 Hrs  [IST]

Federation of Hotel & Restaurant Associations of India (FHRAI) has stated that the RBI’s latest policy measures as being grossly inadequate to address the problems of the Hospitality industry and that the sector has yet again been ignored. Tourism and hospitality business being seasonal and dynamic, the industry is looking to receive specific tweaks in the RBI’s Resolution Framework 2.0. The FHRAI has submitted a representation to the RBI Governor – Shaktikanta Das requesting to provision a special window for restructuring for the tourism and hospitality sector without any cap on loan exposure. It has also asked for that the benefit of loan restructuring under Resolution Framework 2.0 be extended to include even those who had applied for restructuring under Resolution Framework 1.0, but were not able to do so. “We welcome the RBI Resolution Framework 2.0 allowing individuals, small businesses and borrowers, and MSMEs exposure of up to Rs.25 crore. While this is good news, the RBI should take into consideration that the Hospitality industry is presently the most affected sector in the country. Relief measures announced in the previous restructuring schemes by the RBI have provided no succor to the Hospitality sector. The Kamath Committee recommendations for restructuring have made the restructuring plan unfavorable for the Hospitality industry. Discretions provided to lending institutions by the RBI in loan restructuring scheme have provided no relief to Hospitality players. Lending institutions are either reluctant or impose unreasonable conditions to avail the restructuring. We request for a special restructuring window for the Tourism and Hospitality sector that provisions the removal of INR 25 crores cap for restructuring,” says Gurbaxish Singh Kohli, Vice President, FHRAI. In the Resolution Framework 2.0, the RBI has mandated accounts be classified as Standard as on March 31, 2021 to be eligible for restructuring. The FHRAI has pointed out that this condition onerously goes against hotels and restaurants who had already applied under the Resolution Framework 1.0, but were not able to restructure their loans. “Under the Resolution Framework 1.0, many of our member hotels and restaurants had applied for restructuring of their stressed exposures with their banks, but the applications were not processed in majority of the cases. This specific condition now works against the Hospitality industry for availing the restructuring scheme under Resolution Framework 2.0. In view of the abysmal situation of the Hospitality sector, we request the RBI to extend the benefit of loan restructuring to all including to those who had applied for restructuring under Resolution Framework 1.0. The RBI needs to remove the condition requiring accounts to be classified as standard as on March 31, 2021,” concludes D V S Soma Raju, Honorary Treasurer, FHRAI.

Print News Email News Back
Bookmark to Add to NewsvineNewsvine Bookmark with Digg ItDigg
Add RSS to Add to Google Add to My Yahoo! Subscribe with Bloglines Subscribe
* Name :    
* Email :    
* Message :  
»  Kamlesh Barot, Past President, FHRAI & HRAWI conferred with Best of India, Business Award
»  Radisson Blu Hotel MBD Ludhiana completes nine successful years of providing remarkable hospitality services
»  FHRAI Pleads To The PM For Urgent Intervention, Requests For Sector Specific Special Relief Package
»  FHRAI Submits Representation to FM Requesting For Urgent Special Measures For Sector’s Survival
»  Azure Hospitality gears up for the launch of three new restaurants in Goa
»  Trends in the future of cloud-based hospitality tech for 2022: Aditya Sanghi, Co-Founder, Hotelogix
»  Cancelled Christmas, New Year bookings result in INR 200-crore loss for hospitality sector
»  FHRAI Signs MoU With J&K Govt. To Develop Hospitality & Related Infrastructure In The UT
»  IHCL collaborates With CII and EHL, Switzerland, Will Impart Vocational Education To Hospitality
»  Noesis presents the 'Millennials report' on Travel and Hospitality
»  Hospitality Purchasing Managers Forum felicitated at Ambrosia Awards 2021
»  Oxford University Press organoses panel discussion on 'Future of Hospitality Management in India post Covid-19'
»  FHRAI Submits Hospitality Industry’s Recommendations To The Finance Ministry For The Union Budget 2022-23
»  FHRAI Appoints Abhishek Kumar As Assistant Secretary General
»  IHCL Receives Global Honours At The Worldwide Hospitality Awards 2021
»  Two Glion Institute of Higher Education Alumni win the prize of Best Professional Success at the Hospitality Awards 2021
»  Indian School of Hospitality with Sommet Education Kick-off Development Plans for India Region
»  HRAWI welcomes Maha Govt’s order on lifting of timing restrictions for hospitality industry
»  Hospitality Industry Awaits Govt. To Notify Rs.60,000 Cr Loan Guarantee Scheme; FHRAI Requests FM’s Urgent Intervention
»  FHRAI appeals to the Pm for relief from abnormal price rise of LPG for hospitality industry
  The Indian Institute of Architects (IIA) Natcon 2020 virtual event concludes successfully
  Winners of The Park Elle Décor Student Contest felicitated at Indian Design ID 2020
Receive the best of Hospitality content in your mailbox.
Weekly e-Newsletter
Events Calendar

© Copyright 2016 Saffron Synergies Pvt Ltd