Thursday, 28 March, 2024, 7:52 PM
Advance Search
Home

RBI may extend moratorium on loans

Published : Tuesday, 5 May, 2020 at 4:56 PM  Count : 683

RBI may extend moratorium on loans

RBI may extend moratorium on loans


With the nationwide lockdown further expanding, the RBI is considering extending the moratorium on bank loans for another three months to help people and industries affected by the ongoing lockdown under the control of Covid-19.

According to the source, suggestions from various quarters, including the Indian Banks Association, have come for further extension of the moratorium and the RBI is actively considering them, the source said.
The government extended the lock for two more weeks on Saturday, with some relaxation for the red, orange and green areas.

As the nationwide lockdown continues, the flow of income will not resume, the source said, adding that so many individuals and entities in the company will be unable to pay their debts on May 31 after the moratorium expires on May 31.

Thus, extending the moratorium for another three months would be a pragmatic approach from the regulator, a senior public sector official said.

It will help both the borrower and the bank during this difficult time, the official added.

The Reserve Bank of India (RBI) on March 27 allowed banks and financial institutions to defer payment of all term loan installments for three months till March 1 to help ease the woes of March defaulters.

"All commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all -India Financial Institutions, and NBFCs (including housing finance companies and micro-finance institutions) ("lending institutions") are being permitted to allow a moratorium of three months on payment of instalments in respect of all term loans outstanding as on March 1, 2020," the RBI had said.-Internet

GY

Related Topics

Trading   Loan   India  








Latest News
Most Read News
Editor : Iqbal Sobhan Chowdhury
Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000.
Phone: PABX- 41053001-06; Online: 41053014; Advertisement: 41053012.
E-mail: info©dailyobserverbd.com, news©dailyobserverbd.com, advertisement©dailyobserverbd.com, For Online Edition: mailobserverbd©gmail.com
  [ABOUT US]     [CONTACT US]   [AD RATE]   Developed & Maintenance by i2soft