MUMBAI (Reuters) - The Reserve Bank of India on Monday relaxed rules for classifying bad loans for small borrowers saying they may need more time to repay their loan dues after the government withdrew higher-value banknotes.

Banks and other financiers will get an additional 60 days for recognizing certain loans of up to 10 million rupees ($146,800) as substandard, the RBI said in a notification.

The relaxation will apply to dues payable between Nov. 1 and Dec. 31, it said. http://bit.ly/2fTpQ67

(Reporting by Suvashree Dey Choudhury and Devidutta Tripathy; Editing by Sherry Jacob-Phillips)