Banking regulator, Reserve Bank of India has refused to address any plea of banks regarding restructuring of education loans.

Increasing amount of bad debts from education loan segment is compelling banks to go for loan restructuring in this segment. In this regard, banks had requested RBI to consider such restructured loans as standard assets and not drop them in non performing asset category. The apex bank has however denied to accept the proposal.

RBI directs every restructured loan to be put under NPA category. During the global economic slowdown, RBI had permitted a relaxation wherein they could put restructured loans under standard asset category.

Bankers say that RBI is not agreeing to put education loans under this special dispensation owing to the unsecured nature of these loans.

Bankers have estimated that the total NPAs in this category has risen above 2% amounting to Rs 40,000 crore as on March 31.