The SBA, the central bank, has extended its loan amorphous loan for Rs1.8 lakh crore to banks for lending purposes, extending its extension till March 2019, the RBI said on Friday.
The SBA loan amout for March 2019 is equivalent to Rs2,400 crore.
The extension will help banks to accelerate the pace of their capitalization process and reduce the cost of servicing loans.
The bank said that it is extending the extension till June 2019, when it will take into account the anticipated impact of demonetization, which is expected to hit banks hard.
The banks will also have to account for the impact of the demonetisation, which will impact them by raising capital and reducing deposits.