Mumbai, May 5 (TIWN) The Reserve Bank of India (RBI) on Wednesday provided big relief to banks that fear increased provisioning for non-performing assets (NPA) amidst the pandemic would seriously dent their capital.

In order to mitigate the pandemic related stress on banks and as a measure to enable capital conservation, the RBI has now allowed banks to utilise 100 per cent of floating provisions or countercyclical provisioning buffer held by them as on December 31, 2020 for making specific provisions for non-performing assets.